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Thursday, Aug 05, 2021

Overseas crypto exchanges using South Korean currency must register with AML body

Overseas crypto exchanges using South Korean currency must register with AML body

Cryptocurrency exchanges that are based outside South Korea must register with the nation’s anti-money laundering body if they use the Korean currency, a top financial regulator said Tuesday.
Financial Services Commission Chairman Eun Sung-soo made the remarks when asked by a lawmaker whether Binance, the world’s largest cryptocurrency exchange, should comply with a revised law from September.

If a cryptocurrency exchange serves local customers with the won-currency settlement, it must register with the (Korea) Financial Intelligence Unit,” Eun told lawmakers.

The revised law, which went into effect in March with a six-month grace period, requires banks to issue real-name accounts under stricter guidelines to prevent money laundering.

Under the rule, banks will assess a cryptocurrency exchange’s transparency, business risks and the possibility of criminal activity.

Minor cryptocurrency exchanges, which are estimated to number around 100, have been using opaque accounts to lure investors. Such accounts enable cryptocurrency exchanges to manage investors’ money with their own bank accounts.

From Sept. 25, minor cryptocurrency exchanges will be banned from withdrawing money for cryptocurrency trading if they have no real-name bank accounts.
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