South Korea’s Financial Intelligence Unit (FIU) has announced plans to intensify oversight of crypto exchanges in the country, aiming to expel platforms deemed “unsuitable” from the market starting this year. The FIU will expand screening procedures and implement a preemptive trading suspension system for suspicious transactions, aligning with recommendations from the Financial Action Task Force. As the three-year licensing terms for virtual asset service providers expire, exchanges must undergo thorough examinations of their anti-money laundering measures, operational capacity, and consumer protection protocols for renewal. Failure to meet requirements will result in registration denial, reinforcing regulatory efforts ahead of the enactment of the Virtual Asset User Protection legislation in July.
South Korea’s regulatory measures underscore a proactive stance towards combating illicit activities in the crypto sector, with the FIU investigating exchanges like OKX for alleged unregistered operation. The country’s forthcoming legislation aims to streamline regulations and impose penalties for illicit trading practices, reflecting a comprehensive approach to consumer protection and market integrity. As regulatory scrutiny intensifies and legal frameworks evolve, South Korea seeks to ensure the seamless operation of its cryptocurrency industry while deterring crypto-related criminal activities through stringent enforcement measures. (Source: Cointelegraph)
