Banks in South Korea Instructed to Treat Crypto Exchanges as High-Risk Clients
Banks will have to deny services to clients that do not comply with ID verification requirements or fail to report suspicious activity to the FSC's anti-money laundering unit.
Jun 14, 2021 at 10:23 a.m. UTCUpdated Aug 21, 2021 at 7:15 p.m. UTC
:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindeskuat/UQID645GBZGZTDP5VZDCA2LRTI.jpg)
South Korea's banks have been instructed to treat crypto exchanges as high-risk clients by the country's financial regulator.
- The Financial Services Commission (FSC) said crypto exchanges must be subject to strengthened transaction monitoring and ID verification, the Korea Times reported Sunday.
- Banks will be required to deny services to clients that do not comply with ID verification requirements or fail to report suspicious activity to the FSC's anti-money laundering unit, the Korea Financial Intelligence Unit.
- Exchanges will have to terminate transactions made by accounts that are not real-named based or have not been verified using the necessary identity checks.
- Of 60 exchanges in the country, only four are using real-name accounts that meet this standard, according to the Korea Times.
- This latest statement of intent by the FSC around stricter regulation of the crypto industry comes as exchanges have until Sept. 24 of this year to register as virtual-asset service providers (VASPs) for the regulator to then assess the legality of their operations.
STORY CONTINUES BELOW
13:18
Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
05:10
Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
04:07
The first video of the year 2024
40:07
The last regression video of the year 3.67.0
:format(webp)/downloads.coindesk.com/arc/failsafe/user/1x1.png)