Korean FSC Orders Banks to Mandate ID Verification for Crypto Clients
- All crypto exchanges in the country need to apply for a license with the FSC before September 24.
South Korea has doubled down its efforts to regulate the booming cryptocurrency industry. The Financial Services Commission (FSC) has mandated banks to classify crypto exchanges as high-risk clients and ordered them to strengthen financial transaction monitoring and user ID verification, The Korea Times reported.
The regulator further ordered the regulated banks to deny services to customers who refuse to comply with the ID verification process and report suspicious financial transactions to the country’s anti-money laundering unit.
The guidelines came ahead of the mandatory licensing and compliance all local South Korean crypto exchanges have to go through before September 24.
The new FSC order is believed to impact around 60 small-scale cryptocurrency exchanges operating in the country without regulatory permission. Currently, only four major South Korean crypto exchanges are operating in full compliance with the lenders.
The regulatory unit has plans to terminate all transactions made using borrowed or fake accounts after this month. According to the regulator, the new guidelines will ensure the protection of the crypto investors' funds in case the exchange goes bust.
“Banks are essentially forced to take responsibility for issuing real-name accounts. It, therefore, is reasonable that there should be some immunity for undertaking the dangerous and costly task,” the publication quoted an industry official.
Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term Is Priority
South Korea is one of the major cryptocurrency markets, and the country is bolstering its control on many fronts in the industry, from taxation to regulation. The Korean regulators are seeking data from the banks to know the exact number of crypto exchanges operating in the country.
Non-compliant exchanges will expectedly face regulatory actions. Meanwhile, many small crypto exchanges in the country have shuttered in the past few months citing the lack of banking support.
Furthermore, the local publication pointed out that over 90 percent of crypto investments in the country are made through altcoins, which are deemed riskier than Bitcoin due to Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term.
South Korea has doubled down its efforts to regulate the booming cryptocurrency industry. The Financial Services Commission (FSC) has mandated banks to classify crypto exchanges as high-risk clients and ordered them to strengthen financial transaction monitoring and user ID verification, The Korea Times reported.
The regulator further ordered the regulated banks to deny services to customers who refuse to comply with the ID verification process and report suspicious financial transactions to the country’s anti-money laundering unit.
The guidelines came ahead of the mandatory licensing and compliance all local South Korean crypto exchanges have to go through before September 24.
The new FSC order is believed to impact around 60 small-scale cryptocurrency exchanges operating in the country without regulatory permission. Currently, only four major South Korean crypto exchanges are operating in full compliance with the lenders.
The regulatory unit has plans to terminate all transactions made using borrowed or fake accounts after this month. According to the regulator, the new guidelines will ensure the protection of the crypto investors' funds in case the exchange goes bust.
“Banks are essentially forced to take responsibility for issuing real-name accounts. It, therefore, is reasonable that there should be some immunity for undertaking the dangerous and costly task,” the publication quoted an industry official.
Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term Is Priority
South Korea is one of the major cryptocurrency markets, and the country is bolstering its control on many fronts in the industry, from taxation to regulation. The Korean regulators are seeking data from the banks to know the exact number of crypto exchanges operating in the country.
Non-compliant exchanges will expectedly face regulatory actions. Meanwhile, many small crypto exchanges in the country have shuttered in the past few months citing the lack of banking support.
Furthermore, the local publication pointed out that over 90 percent of crypto investments in the country are made through altcoins, which are deemed riskier than Bitcoin due to Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term.