Just: Korean regulators expand money laundering recommendations for foreign cryptocurrencies

South Korean regulators continue to implement strict regulatory policies in crypto. The Financial Services Commission (FSC), the main regulatory body in the country, is currently focusing on foreign cryptocurrency exchanges using the National Korean Fiat. Any foreign currency designed to serve Korean customers must be registered with the National Anti-Money Laundering Authority, the chief regulator has said.

The comments were made by Eun Son, the head of the country’s main regulatory body. The Sun answered a question about Binance’s eligibility and whether the world’s largest cryptocurrency exchange complied with new rules that will take effect in September.

March January’s new anti-money laundering guidelines, which came into force in March but were later extended to September, require crypto exchanges to open their bank accounts under stricter rules. None of the 200 crypto exchanges operating in the country applied for a license to comply with the new rules, and most feared closure.

Hundreds of small crypto exchanges fear closure
Hundreds of small crypto exchanges discovered in Korea have been implicated in using opaque banking methods to attract more customers. Most used the customer’s bank account to facilitate transactions, rather than opening the original accounts.

After September 25, when the deadline for new directives expires, many fear closure. Many of these small crypto exchanges didn’t bother to sign up when the first deadline came in March, saying they would actually stop their business.

South Korea has adhered to strict rules on cryptocurrencies, although it has defended the use of the blockchain in recent years. The main problem for regulators in the crypto field is money laundering, and this is the main reason for the implementation of a strict money laundering policy on crypto platforms.

South Korea also proposed introducing a 20% crypto capital gains tax

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