- South Korean Financial Regulators request the trading platforms to report any suspicious activity
- Authorities of Financial Intelligence Unit (FIU) asked crypto exchanges to obtain license to work
- Regulators have also asked the exchanges to delist the privacy coins
Just a month left to take control of the crypto exchanges of the country. The South Korean Financial authorities FIU have asked the crypto exchanges of the country to file the application to obtain a license to work smoothly and inform them of any suspicious activity or transactions happening on their platform.
Financial Regulators of South Korea
The South Korean Financial Regulators have requested all the trading platforms to report suspicious activities & transactions. The South Korean financial regulators are all set to policing the activities of the nation’s crypto exchanges. This is almost after a month.
The authorities informed that they urged the crypto exchanges to inform them about any kind of suspicions happening on the exchanges. Detailed information about actions has been given.
The Electronic Times and Yonhap, the prominent news publications recently revealed that a new batch of regulatory requirements comes from the Financial Services Commission’s Financial Intelligence Unit. FIU is the body that deals with anti-money laundering and combating the financing of terrorism (AML/CFT), related matters in South Korea.
The role of FIU is very crucial in combating the suspicious activities and putting an end to it. This could only be done, when the country’s exchanges inform about the suspicious activities immediately when they suspect something wrong is happening. They require exchanges to flag and inform about any unusual-looking transactions happening on their platform within three working days. Also all the transactions’ value should be reported in traditional currency (KRW).
Delisting Privacy Coins & License for operation
Regulators have also asked the exchanges to delist the privacy coins. This was first announced in November 2020. FIU will have the final say on how these exchanges will function and are policed. A manual has also been made for the exchanges to understand how they should follow the rules and regulations once the crypto specific laws are promulgated next month. The exchanges will now have to apply for a license if they want to operate smoothly in the country.
The license will be given only when they will provide FIU with the proof that they have obtained information management system certification, have real name authenticated banking contracts in place with domestic banks. They also want proof that qualified staff is hired, who will play a key role in decision making and security related roles.
The necessary documents will be submitted by September 25 to the FIU. The FIU has the authority to forcibly close, audit or conduct spot checks on non-compliant platform operators.
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Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.