Cryptocurrency exchanges that fail to meet South Korea’s stringent operating standards will be expelled from the crypto market, the country’s financial intelligence agency has said. The Financial Intelligence Unit said its annual work plan incorporates the insights of cryptocurrency experts serving on its advisory committees.
South Korea to Deploy System for Identifying Suspicious Transactions
South Korea’s Financial Intelligence Unit (FIU) announced on Feb. 12 that cryptocurrency exchanges failing to meet its enhanced standards will be ousted from the nation’s crypto marketplace. This also applies to digital asset firms intending to enter South Korea’s cryptocurrency market.
Furthermore, the South Korean government is reportedly considering the implementation of a trading system that would automatically halt suspicious transactions, even prior to the initiation of an investigation. This system, recommended by the Financial Action Task Force (FATF), is already in use in 49 countries, including Britain, Finland, and Germany.
According to a report by The Korean Times, the FIU’s new strategies for the crypto industry are detailed in the annual work plan, unveiled on Feb. 12. The work plan is said to incorporate the insights of cryptocurrency experts serving on its advisory committees.
Commenting on the agency’s plan to subject crypto exchanges to higher operating standards, Rhee Yun-su, the FIU commissioner said:
“In preparation for the enactment of the virtual asset consumer protection act from the latter half of this year and the large-scale renewal registrations, KoFIU will agilely push forward with the necessary institutional improvements to ensure the seamless operation of the cryptocurrency industry,” Rhee Yun-su, the commissioner at the intelligence unit.”
According to the report, South Korea’s first protection law on virtual asset consumers is reportedly set to take effect in July.
Source : Bitcoin.com / Feb 15, 2024