South Korea is moving to amend its Foreign Exchange Transactions Act to impose stricter oversight on cryptocurrency transactions. This measure aims to combat money laundering and financial crimes.
Proposed Amendments
The amendment requires virtual asset service providers (VASPs) involved in cross-border transactions to register under the new Act and submit monthly reports of user transactions to the Bank of Korea.
Reasons for Legislative Changes
Choi Eun-Seok, a member of the National Assembly from the People Power Party (PPP), sponsored the amendment bill citing the necessity to combat crypto-related money laundering and financial crimes. In his view, the lack of oversight has led to a rise in illegal transactions and money laundering.
Impact on FinTech Sector
The legislator believes that proper regulation and oversight on crypto and FinTech-based services will aid the Korean government in curbing the growing threat. This change may significantly impact the FinTech sector, requiring companies to adopt new compliance measures.
The proposed legislative changes could significantly impact the cryptocurrency market in South Korea, introducing stricter oversight on financial operations and combating money laundering.
