South Korean financial regulators are about to start monitoring cryptocurrency activity in the country, and new trade barriers are constantly emerging. In addition, a South Korean regulator has codified measures announced last year for private room lists.

No major national exchange can list cryptographic assets in private hands

According to the Electronic Times, the Financial Intelligence Unit (FIU) of the Financial Services Commission has confirmed that all confidential documents will be deleted from the cryptocurrency exchanges of the nation.

The regulator argued that the difficulty in identifying the details of the transactions posed a high risk of money laundering through such cryptocurrencies.

Although the FIU recently confirmed this, the local press first reported on this measure in November 2020. The FIU is determined to ban confidential assets such as Monero (XMR) and Zkash (ZEC).

South Korean platforms like Okex have since been forced to share multiple rooms to comply with anti-money laundering (AML) regulations.

However, at press time, none of South Korea’s major crypto exchanges have privacy-focused cryptocurrences on their list. The Financial Intelligence Unit (FIU) is the regulatory body responsible for dealing with money laundering issues.

Reporting of non-standard transactions within three working days

The unit will also ask national exchanges to report all unusual transactions on their platforms within three working days, the Yonhap Times reported. FIU guidelines require transaction amounts to be denominated in Korean Won (KRW).

The regulator expects the policy to be shared through a protection management system that collects information such as bank records and social security numbers. The department even wants banks to have to ensure that stock exchanges also comply with anti-money laundering rules.

South Korea’s cryptography law will come into effect in March 2021 after some delays and debate over who should oversee the entire cryptography industry from a legal standpoint.

Furthermore, the coronavirus pandemic has suspended discussions, as other bills under preparation have been identified as high priority.

What do you think of this news as the expiration of the Cryptography Act in South Korea approaches? Let us know in the comment section below.

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