Foreign Coin Exchanges Told to Report Themselves
The Korea Financial Intelligence Unit has told 27 foreign cryptocurrency exchanges to report themselves by Sep. 24 in accordance with the Act on Reporting and Use of Specific Financial Transaction Information.
According to the Financial Services Commission, the 27 exchanges are providing their services in Korean, doing marketing or promotion for South Koreans, or supporting won-based transaction and settlement and access to the exchanges from South Korea will be blocked in the case of non-registration by that date. The 27 include Binance, the largest one of its kind.
“The 27 exchanges and every other foreign cryptocurrency exchange that has South Korean customers must report themselves,” the Korea Financial Intelligence Unit said, adding, “Business without report is subject to up to five years in prison or a fine of up to 50 million won.”
The unit is planning to work with the police, the prosecution and foreign financial intelligence agencies in dealing with the exchanges. A cryptocurrency exchange can report itself in accordance with the act only after it obtains the Information Security Management System (ISMS) certification and a confirmation from a bank. At present, the 27 exchanges are without the certification without exception.