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The financial regulators in South Korea announced that domestic crypto investors would be covered under the amended regulations. The Financial Services Commission (FSC) has made it clear that the only assets of the registered crypto businesses will be given protection under the law.
The chairman of FSC, Eun Sung-soo, also told the media through a speech made at 2021 Korea Fintech Week in Seoul that transactions and deposits made through cryptocurrency exchanges registered before the regulations were revised would be under the scrutiny of the financial watchdogs under the revised “Act on Reporting and Using Specified Financial Transaction Information.”
“Only crypto exchanges that have adopted real-name bank accounts and granted Information Security Management System certification from the Korea Internet & Security Agency will qualify for the application,” Eun commented.
South Korea’s top financial regulator’s head also highlighted that the agency cannot provide protection to the consumers due to the volatile nature of the digital asset market.
“What I want to make clear is that cryptocurrency volatility is not a subject of our protection,” Eun added. “crypto-related crimes such as frauds or scams are only handled by the police, not the financial watchdog.”
— Trading MarcoDaCosta (@MarcoDaCostaFX) May 26, 2021
The crypto businesses in South Korea are required to file for regulatory approval by September 25, 2021. It has been reported that the FSC has been calling for major domestic banks to give more information regarding the status of their dealings with digital currency companies. The amended laws require crypto exchanges to keep a banking account record under the name of each customer that has been registered on the platform.