All foreign cryptocurrency transactions that has any effect or implication on the local financial market in South Korea will henceforth be subjected to the country’s amended crypto regulation. This is according to a recent report by Chloe Lee published by mainstream crypto website Cointelegraph.
Back in October 2018, South Korea’s Financial Action Task Force (FATF) adopted the changes it introduced to the AML standards which covers the activities of exchanges and all digital currency-related firms.
The FATF included definitions for “virtual asset” (VA) and “virtual asset service provider” (VASP) and has taken a cautious approach to the activities and operations surrounding it.
Consequently, the Korean Financial Intelligence Unit has since notified the 27 foreign VASPs that “conduct business operation targeting Koreans” of their obligations in this regard.
First, VASPs must register with the KoFIU or risk facing sanctions from the financial watchdog. VASPs who didn’t get the notice are also expected to register with the regulator. All VASPs have a deadline of September 24 to comply.