The South Korean government stated the need to strengthen the regulatory framework for the activities of cripture, especially after the recent break-ins. Already submitted a bill that provides several new optional rules.
The decision of the Korean government
On 19 June, the second largest crypto currency exchange in South Korea, Bithumb, as a result of hacking, lost $31 million on 10 days earlier, hackers broke into the seventh-largest crypto currency exchange Coinrail, stealing $40 million.
The Chairman of the main financial regulator of the country, the financial services Commission (FSC), Choi Jong-ku said:
“To avoid this, we need to make stable and robust trading system and strengthen the protection of traders in cryptomeria”.
The revised bill
“Under the proposed bill, the government “will determine the cryptocurrency exchange as a business for processing virtual currency”, — says the publication, noting that the obligation to prevent money laundering will be imposed on all companies engaged in scriptactive.
If the bill passed in the National Assembly, virtual stock exchange will have to report to the financial intelligence unit (FIU) on the business and regularly monitored by the FIU. If the authorities find any illegal activity, financial Supervisory Service (FSS) and the FIU will conduct the investigation.
The proposed amendment also requires all financial companies “to keep financial transaction information and information associated with the presence of mandatory reporting for transactions and reporting on large transaction confirmation of customer data for a period of five years.
Fines and penalties
Sanctions will be imposed on any cryptocurrency of the company for the breach or failure to comply with financial regulation. They include “recommendations on the dismissal of the leadership at the highest level, suspension of business, warning agencies, and correction requirements”.
Among a number of proposed penalties, for example, there is a penalty of 30 million won ($27 077), if the exchange is not conducted the customer identification process or not reported a suspicious transaction.
If you find an error, please highlight the text and press Ctrl+Enter.