South Korea to Conduct Virtual Asset Exchange Inspections to Expel Ineligible Platforms
The South Korean government is planning to conduct virtual asset exchange inspections later this year in order to expel platforms that are not eligible. The Financial Intelligence Unit (FIU) released a “2024 Work Plan” on Monday, which includes measures to prevent unauthorized virtual asset exchanges from accessing the Korean won market and strengthen screening and anti-money laundering checks. The FIU also intends to enlist the help of lawyers and accountants in this process.
Mid-Year Check and Policy Recommendations
In the first half of 2024, a preliminary check will be conducted to assess money laundering risks and the functioning of the market. A more detailed check will be carried out in the second half, with any virtual asset operators that fail to meet the standards being expelled. The review will also be expanded to major shareholders and individuals with a history of violations will be disqualified. The implementation of a Financial Action Task Force (FATF) is also suggested to identify crimes and stop suspicious transactions during investigations.
South Korean Officials Required to Disclose Crypto Holdings
In addition, high-ranking public officials in South Korea will be required to disclose their cryptocurrency holdings starting this year. This decision was made following the Coin Gate political scandal, which involved a lawmaker accused of trading coins using insider information. The new rules addressing fraud, embezzlement, and trust breaches in the crypto industry will come into effect on July 19.
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