The Financial Services Commission (FSC) from South Korea is planning to follow the same path as other regulators globally towards Binance, a major cryptocurrency exchange, by setting a deadline to register its business. According to The Korea Times, the crypto firm is required to register its business before September 24, which is the deadline imposed by the South Korean government for crypto-related companies to obtain licenses under the revised Act on Reporting and Using Specified Financial Transaction Information.
With the new rulings, the exchanges should comply with the certification by the Information Security Management System to guarantee its customers provide their real names for crypto transactions. Moreover, executives should pass a criminal background to comply with the law. The measure comes in the wake of the FSC’s intentions to extend the ruling on overseas crypto businesses that wish to deal with South Korean users.
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Those who do not meet the criteria imposed by the domestic financial watchdog could face a permanent ban from doing business in the country. “Even if the exchanges are headquartered overseas, if they conduct business operations to target Korean users, they are obliged to report this to the FIU,” an official of the Financial Intelligence Unit (FIU) commented.
Will Binance Shut Down in South Korea?
“If Binance fails to meet the criteria in the Act on Reporting and Using Specified Financial Transaction Information by September of this year, then the financial authorities should take action to shut it down,” Noh Woong-rae, a lawmaker of the ruling Democratic Party of Korea, said on the matter. However, as of press time, there is no official information from both parties, Binance and the watchdog, on whether the FSC is targeting specifically Binance, and if they are, it is because of suspicions of wrongdoings.
Last week, Thailand’s Securities and Exchange Commission (SEC) filed a criminal complaint against the cryptocurrency exchange, arguing the firm is illegally offering services in the country.