south korea might bring regulations against crypto exchanges

South Korea Might Bring Regulations Against Cryptocurrency Exchanges

On April 22, 2021, A meeting was held by National Assembly’s policy committee South Korea. During the meeting, South Korea’s chief financial services regulator, Eun Sung-soo, mentioned that the agency has yet to receive any Virtual Asset Service Provider (VASP) applications required under a recently amended law effect later in 2021.

south korea

According to South Korea’s anti-money laundering law and the Financial Transactions Reporting Act, all financial authorities require VASPs registration. The laws were amended in 2020 to apply to cryptocurrency exchanges across the country.

The chief financial services regulator said in the following meeting, “There are an estimated 200 cryptocurrency exchanges in the country, But if the current situation continues then all of them could be shut down.”

The current situation is, on March 25, the Financial Services Commission (FSC) has begun accepting applications for the following registrations. But sadly, no cryptocurrency exchanges have applied yet except the largest 4 crypto exchanges in the country. Those exchanges have until September 24 to get registered in the Financial Services Commission.

Reportedly, The Financial Services Commission only approves exchanges that can demonstrate the strength of their Anti-Money Laundering systems. 

According to a recent report by CoinDesk, Eun Sung-soo has also created a controversy by putting a statement, All the country’s cryptocurrency exchanges could be shut down in September 2021.

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