South Korea has been actively shaping its cryptocurrency regulatory landscape, with a focus on investor protection and curbing illicit activities. Here’s a summary of key aspects:
Key Regulatory Points:
South Korea expected to allow more crypto exchanges to survive do
Image Source: forkast.news
Virtual Asset User Protection Act:
South Korea enacted legislation in 2024 to bring cryptocurrency markets under regulatory control. This act emphasizes investor protection following several cryptocurrency fraud cases.
It involves increased oversight of trading activities, with mandatory reporting requirements for crypto exchanges.
There are concerns about the broad definitions within the act, potentially impacting legitimate market-making activities.
Financial Services Commission (FSC) Actions:
The FSC is actively enforcing regulations, including cracking down on unregistered foreign exchanges.
They are working to prevent money laundering, hacking, fraud, and data breaches related to cryptocurrency.
The FSC is also working on regulations regarding digital asset issuance and circulation.
Anti-Money Laundering (AML) and Know Your Customer (KYC) Requirements:
South Korea has strengthened AML/KYC requirements for Virtual Asset Service Providers (VASPs).
This includes the requirement for real-name bank accounts for cryptocurrency trading.
The “travel rule” is being implemented, requiring the exchange of customer data between transaction counterparties.
Restrictions on Unregistered Exchanges:
South Korea is actively blocking access to unregistered foreign cryptocurrency exchanges.
This includes working with platforms like Google and Apple to restrict access to related apps.
The goal is to only allow access to registered and compliant exchanges.
Fintech and Crypto regulation changes:
South Korea is moving to allow companies and non-corporate organizations to trade cryptocurrencies at home.
However, the ban on local investors’ trading of spot-bitcoin exchange traded funds will remain in place, citing a lack of investor protection systems.
Overall Trends:
South Korea – Cryptocurrency Laws and Regulation – Freeman Law
Image Source: freemanlaw.com
South Korea is taking a proactive approach to regulating the cryptocurrency market.
The focus is on balancing innovation with investor protection and preventing illicit activities.
Regulatory scrutiny is expected to increase, with stricter enforcement of existing and new rules.
It’s important to note that the regulatory landscape is constantly evolving, so staying updated on the latest developments is crucial.
South Korea pledges tighter crypto regulations – GLI
Cookies are small text files that can be used by websites to make a user\'s experience more efficient. The law states that we can store cookies on your device if they are strictly necessary for the operation of this site. For all other types of cookies we need your permission. This site uses different types of cookies. Some cookies are placed by third party services that appear on our pages.
Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. The website cannot function properly without these cookies.
Marketing cookies are used to track visitors across websites. The intention is to display ads that are relevant and engaging for the individual user and thereby more valuable for publishers and third party advertisers.
Preference cookies enable a website to remember information that changes the way the website behaves or looks, like your preferred language or the region that you are in.
