Korean regulatory agency Financial Intelligence Unit (FIU), The agency is increasing oversight of domestic cryptocurrency exchanges as the agency unveiled its plans for exchanges this year.
South Korea’s Financial Intelligence Agency announces work plan for cryptocurrency exchanges
According to local ReportThe Financial Intelligence Unit (FIU) has developed a detailed “2024 Work Plan”.Plan aims to protect Korean won market from illegal currencies cryptocurrency exchange By improving anti-money laundering (AML) procedures; non-compliant operators will be identified and removed, the regulator said.
Local reports highlight that the finance department developed the strategy after gathering input from professionals and businesses, in collaboration with the Policy Advisory Committee and relevant organisations.
The strategy will increase reporting scrutiny and inspections of virtual asset exchanges in South Korea. In addition, virtual asset exchanges that do not meet regulatory standards will be prohibited from operating in the country.
In addition, the report also revealed plans to introduce a pre-emptive trading suspension system for “suspicious transactions”.The system will be Financial Action Task Force (FATF).
It can therefore quickly prevent the concealment of proceeds of crime at all stages of the prosecution’s investigation. According to reports, the Financial Intelligence Unit plans to implement this system domestically.
The unit is carrying out expert research services to explore foreign cases and investigate the introduction of measures in this area. In addition, the Financial Intelligence Unit intends to implore experts in the field, such as accountants and lawyers, to cooperate in the fight against money laundering.
The move would tend to improve accountability and openness given concerns about insider trading in the political landscape.
The program will be distributed in two distinct phases
A two-stage inspection process will be part of the finance department’s plans, with inspections taking place during the first and second half of this year. In the first phase, the FIU will first assess the functioning of the market and its money laundering capabilities.
At the same time, the second phase will conduct a more comprehensive investigation of non-compliant virtual asset operators. Regulators claim that by scrutinizing and expelling these virtual asset operators, users will ultimately be protected. Lee Yoon-soo, director of the Financial Intelligence Office, said:
In preparation for the implementation and large-scale update report of the “Virtual Asset User Protection Act” in the second half of this year, we will quickly promote system improvement, strengthen report screening of virtual asset operators, and on this basis prepare and continuously respond to updates Report. We will do this.
As part of the policy, major shareholders will also be assessed, while those with illegal records or poor social credit (such as loan defaults) will be subject to higher disqualification measures.
Featured image from iStock, chart from Tradingview.com