South Korea tightens control over cryptocurrency industry

As of March 25, digital asset companies in South Korea are required to comply with anti-money laundering requirements. This is stated on the website of the Financial Services Commission (FSC).

At a meeting on March 17, the Cabinet of Ministers supported amendments to the Law on the provision and use of information on certain financial transactions aimed at the cryptocurrency industry.

According to the document, Virtual Asset Service Providers (VASPs) must register before starting their commercial activities. The authorities have provided existing companies with a grace period – they can submit documents until September 24, 2021.

Service providers are required to report suspicious transactions to FSC, verify the identity of their customers, and undergo AML compliance checks. Companies face fines for violating the requirements.

In 2019, South Korea proposed to tighten control over bitcoin exchanges in accordance with the recommendationsFATF…

At the same time, it became known about the government’s plans to impose capital gains tax on transactions with digital assets. The changes will take effect from 2022.

Recall that in March 2020, the South Korean parliament approved the full legalization of cryptocurrency trading.

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