The sharing of encrypted data in South Korea, which lacks comprehensive data collection and identity verification measures, may soon face severe penalties.

South Korea’s Financial Services Commission has submitted a revised proposal to regulate virtual asset service providers (VASPs), according to an official statement released Wednesday.

The proposal introduces new VASP sanctioning standards and simplifies and integrates existing industry sanctioning rules. Under the revised proposal, the CFD will be able to impose fines on outlets that fail to report and record suspicious transactions.

Penalties vary between 30 and 60 percent of the statutory maximum, depending on the severity and nature of the offenses. Fines of 50% or more are imposed on some small businesses.

As part of the proposal, the FSC also wants to require cryptocurrency service providers to have a dedicated reporter for large transactions, as well as written operating procedures and employee training.

According to the announcement, the proposal will be published by the 11. March to the 20th. April will be open for public comment, effective immediately following the announcement. The proposal is attached to the Law on Financial Transaction Reporting and Use of Specific Information, adopted on 25 December 2006. As part of the law, VASs, such as cryptocurrency exchanges, must implement extensive know-your-customer and anti-money laundering controls, including disclosing the real names of their customers.

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