South Korea has gone to great lengths to regulate the crypto industry and remove any danger for investors.However, its recent move seems particularly tough, as the country’s financial watchdog, the Financial Services Commission (FSC), recently announced that crypto exchanges will not be allowed to handle cryptos that pose a high risk of money laundering
The announcement was made yesterday, November 3rd, and it basically says crypto exchanges in South Korea will no longer be allowed to handle privacy coins
The updates were part of the guidelines of the Special Payments Act This is a regulatory document that covers the legality of digital coins in the country
Privacy coins, referred to as ‘dark coins’ in the ad, are cryptocurrencies that are much more difficult to trace than Bitcoin, Ethereum and the like. This includes cryptos such as Monero (XMR), Dash (DASH) and Zcash (ZEC)
FSC changes to the Special Payments Act are expected to be implemented next year, March 2021 Meanwhile, all exchanges are urged to start using KYC and AML procedures, which basically means that they must verify the identity of their users
Once the process is complete, no one will be able to use the regulated exchanges anonymously
In addition, stock exchanges are required to report on their operations within six months from the implementation of the law
While the new rules are pretty strict, they won’t necessarily have too much of an impact on exchanges.After all, many of them were more than aware of the global stance on privacy coins, that’s why they have already written them off in order to comply with existing international rules and guidelines
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Cryptocurrency Exchange, Finance, Bitcoin, Monero, South Korea
News from the world – GB – Privacy coins will no longer be allowed on Korean stock exchanges – CryptoCoinNews
