South Korea is considering amending its Foreign Exchange Transactions Act to require virtual asset service providers involved in cross-border transactions to register under the new Act and submit monthly reports of individual users’ transaction details to the Bank of Korea. This move is aimed at combating crypto-related money laundering and foreign exchange crimes in the country. The proposed amendment, sponsored by National Assembly member Choi Eun-Seok, aims to create a system for monitoring crypto transactions to reduce illegal activities.
Choi Eun-Seok believes that the lack of monitoring has led to an increase in illegal transactions and money laundering in South Korea. He is advocating for proper regulation and oversight of crypto and FinTech-based service providers to help the government address these growing threats. The proposed amendment aligns with the government’s efforts to regulate the crypto industry and maintain a well-monitored cryptocurrency ecosystem while promoting innovation.
Last October, Korean Minister of Economy and Finance Choi Sang-mok announced that proposed amendments, such as the one put forward by Choi Eun-Seok, will undergo consultations and legislative review. The Minister stated that the ideal timeline for implementing the Act would be in 2025, pending legislative approval. In the meantime, the Korean Financial Intelligence Unit reported a significant increase in suspicious transactions, prompting the Ministry of Economy and Finance to enhance definitions of virtual assets and their merchants before implementing the amendment.
The proposed amendment reflects South Korea’s commitment to regulating the crypto industry effectively. The region is known for its efforts to promote a well-regulated and organized cryptocurrency ecosystem, with a focus on balanced regulation that does not stifle innovation. The government’s move towards greater oversight of crypto transactions is essential in addressing the growing threat of money laundering and illegal activities within the industry.
While the proposed amendment aims to enhance regulatory measures in South Korea’s crypto industry, it is essential for stakeholders and users to exercise caution and stay informed. The information presented in this article is for educational purposes only and does not constitute financial advice. Readers should be aware of the risks involved in utilizing crypto services and products, as Coin Edition is not liable for any losses resulting from actions taken based on the content provided. It is crucial for individuals involved in the cryptocurrency market to stay updated on regulatory developments and adhere to compliance measures to ensure a secure and thriving industry.
