The existing firms on Crypto in South Korea are pathetically facing a strict reporting rules for crypto business.
In South Korea, there are incoming laws on financial reporting for crypto business in the country and this is regulated by South Korea Crypto regulatory space.
There have been an amendment to the South Korea Financial Service Commission as reported by Korea JoongAnng Daily and this amendment dovetails into its cryptocurrency sector.
Record of the transactions of wallet providers, asset managers, exchanges and custodial platforms are to be filed with the Financial Intelligence Unit and the aforementioned is the gravamen of the amendment.
FSC is responsible for Anti-Money Laundering oversight across the financial ecosystem of South Korea, while FIU is an arm of FSC.
From March 25th, the South Korea Crypto regulation will come into effect. There will be a six months window for compliance of the new regulator rule by virtual asset service providers.
There will be an adoption of robust customer identification protocols by Crypto service providers in South Korea, which is part of the new regulation. Official reports should be made to the FIU for any suspicious transaction, which must be flagged, for further investigation.
Ultimately, failure to comply with the regulations, will lead to imprisonment for five years if found guilty mainly for the principal actors and up to 50 million in fines ($44,000).