South Korean VASPs Urged to Bolster Regulatory Compliance Standards
In an aggressive stand against proliferating unlawful activities in the digital currency market, South Korean authorities announced their commitment to bolstering the compliance efforts of virtual asset service providers, while adequate legislation is debated. The FSC’s Korea Financial Intelligence Unit, a government agency with the express mandate of combating financial crimes, convened a meeting to discuss strengthening compliance with virtual asset service providers (VASPs).
Main Points:
- Virtual asset operators play a crucial role in preventing illegal activities.
- Upbit has developed an AI-powered system to detect abnormal transactions.
- Bithumb has implemented a feature to detect money laundering transactions and automatically terminate the exchange app.
- Coinone has enhanced management and monitoring of ‘risk wallet address’ related to financial accidents.
- Korbit has introduced a real-time management system for Suspicious Transaction Reporting (STR) and a secondary review system.
Hot Take:
South Korean authorities are taking decisive action to combat unlawful activities in the digital currency market by urging virtual asset service providers to strengthen their compliance efforts. By implementing advanced technologies and enhancing management systems, these providers aim to protect investors and establish market order. This collective commitment and ongoing dialogue among industry players will contribute to a more secure and regulated virtual asset market in South Korea.
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