Mid-Year Check and Policy Recommendations
South Korea’s Financial Intelligence Unit (FIU) is gearing up for thorough inspections and implementing stringent measures for unlicensed cryptocurrency exchanges.
In the first half of 2024, authorities will conduct initial checks to assess money laundering risks and the overall functioning of the market. Subsequently, the second half will witness more detailed evaluations, with any non-compliant operators facing expulsion.
The review will extend to major shareholders, and the law’s scope will broaden to disqualify those with past violations or financial issues. Additionally, the introduction of social credit criteria will further enhance regulatory scrutiny.
Enhanced Regulatory Measures
As South Korea strengthens its grip on the cryptocurrency market, authorities are contemplating an advanced suspension system for suspicious transactions. This would rapidly prevent the concealment of illicit funds during all stages of the investigation process.
The Financial Intelligence Unit (FIU) released a “2024 Work Plan” on Monday, collecting opinions from experts through consultation with the Policy Advisory Committee, Yonhap News reported.
Collaborative Efforts for Compliance
The department plans to prevent unauthorized virtual asset exchanges from accessing the Korean won market. It also aims to strengthen screening and anti-money laundering checks to remove ineligible exchanges already operating. To assist with this, the FIU intends to enlist the help of lawyers and accountants.
South Korean Officials Required to Disclose Crypto Holdings
South Korea, a significant player in the global cryptocurrency market, is tightening regulations amidst concerns over fraud and market manipulation. Notable exchanges such as Upbit and Bithumb are subject to increased scrutiny.
In response to scandals like the Coin Gate affair, involving allegations of insider trading by a parliamentary committee member, authorities have mandated high-ranking public officials to disclose their cryptocurrency holdings. This move reflects efforts to enhance transparency and accountability in the cryptocurrency sector.
As regulatory measures evolve and enforcement strengthens, South Korea aims to foster a more secure and trustworthy environment for cryptocurrency trading.