Korea’s Financial Service Commission Targets Tax Evasion, Speculation, Underage and Illegal Activities in Measures Released

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Korea Financial Service Commission Press Briefing on January 23 2018

In a press release date January 23rd, the Korean Financial Services Commission released outlined measures that will facilitate trading through real-name bank accounts linked to cryptocurrency exchange. The circular also provides guidelines aimed at avoiding cryptocurrency related money laundering (Cryptocurrency –related AML Guideline) as a move to curb risk of use of cryptocurrencies for illegal and speculative activities and tax evasion.

The strict measures that came into force at the end of January aimed at stopping the use of unanimous bank accounts, foreign nationals and the engagement by underage in cryptocurrency exchange transactions.

The measure came after a joint inspection of six commercial banks that provided banking facilities to cryptocurrency exchanges by the KoFIU and FSS which established a number of gaps in the bank’s AML regimes. The emanating policy measures included:

  • Requirement on Financial institutions to undertake Enhanced Due Diligence (EDD) in transactions with cryptocurrency exchanges to ensure safety of user’s funds;
  • Definition of transactions that are deemed money laundering;
  • Banks to refuse to offer cryptocurrency exchanges accounts if they not provide their user’s ID information;
  • Banks expected to strengthen their internal controls and share information between themselves on cryptocurrency exchanges.

 

You can read the Press Release here

Ahmed Ali