South Korean Regulators Unveiled New Rules For Combating Money Laundering Through Crypto Exchanges
The Financial Services Commission of South Korea (FSC) tightened the system of regulation of transactions on crypto exchanges. This was done to struggle the money laundering. The changes make it possible to understand that today it is necessary to control the operations of banking organizations servicing cryptocurrency exchanges.
The new rules say that the account on the crypto exchange should belong only to the person in whose name it was registered. This helps prevent fraudulent transactions.
It is expected that the new changes will not allow traders to use the "Kimchi Award", revealing suspicious movements of funds on exchanges and bank accounts connected to crypto exchanges. Earlier, some traders bought cryptocurrency on foreign trading floors and sold them on the South Korean exchanges. As a result, they made a big profit. Back in January of this year, FSC officially banned foreigners and minors from carrying out such trades.
“The Government is concerned about manipulation of market conditions and injection of illegal funds while market funds are leaked into speculative investments. We view that foreigners’ and minors investments contribute to our areas of concern,” the head of the FSC’s crypto response team told Forbes at the time.
Interestingly, in some cases, the South Korean Financial Services Commission (FSC) and the Financial Supervision Service have acknowledged that the government is reluctant to regulate the cryptocurrency market, as it fears that local investors will interpret it as a legitimate cryptocurrency resource. Nevertheless, the growth in the number of cryptocurrency hacks and scammers leaves the authority to take measures to regulate this market.