In recent years, it has become quite clear how South Korea perceives the adoption of cryptocurrencies and blockchain technologies. The country has turned out to be very welcoming and supportive towards crypto-blockchain technology adoption.
After the pandemic, the country has even expedited the process of introducing the cryptocurrency industry as a new sector. Several investments are now being made in the cryptocurrency industry by the South Korean Government to ensure that the industry is adopted on a wider scale.
However, the South Korean Government is now tightening the regulatory fence around the crypto-blockchain industry. The country is doing it to make sure that there are no loose ends left for the cryptocurrency-blockchain industry.
The regulatory authority has intimated that in order for a crypto-entity to operate in the country, they must strictly adhere to the regulatory structure that has been laid out by the authority.
To ensure that all the cryptocurrency exchanges fully adopt the new regulations, South Korean regulators have given ample amounts of time to them. However, cryptocurrency exchanges are still finding it difficult to adopt the new regulatory guidelines.
With only a month to go before the new crypto law comes into play in South Korea, regulatory authorities are now becoming active. According to the latest reports, a regulatory authority has just shared details of what it would require from the cryptocurrency exchanges.
The regulator has recently provided details around what it would expect to see from the cryptocurrency exchanges around the transactions data from traders.
The information around the requirements from the regulator has been shared by the local news agencies, Yonhap and Electronic Times.
According to the reporting firms, the new regulatory rules and guidelines have been shared by the Financial Intelligence Unit (FIU) of the Financial Services Commission.
The Financial Intelligence Unit (FIU) is known for dealing with the regulatory policies surrounding Combating the Financing of Terrorism (CFT) and Anti-Money Laundering.
According to the new regulations the cryptocurrency exchanges in South Korea will be required to provide the details of high-risk transactions to the regulatory authority within three working days.
The regulatory authority has also instructed the cryptocurrency exchanges to provide the amount of each unusual transaction mentioned in South Korean Fiat. Furthermore, the regulator has also instructed the cryptocurrency exchanges that they need to de-list all the privacy tokens from their platform.
This is not the first time the regulator has announced the de-listing of privacy tokens. The first time, the regulator released notification around the de-listing of privacy tokens was back in November 2020.
The FIU has also made it clear that it will be the governing/policing authority over the cryptocurrency exchanges in the country. It has also released the list of exchanges and companies that are willing to continue operating in crypto once the regulations are put in place.