Korea Digital Asset (KODA), South Korea's largest institutional crypto custody service, has announced an upgrade to its anti-money laundering (AML) system ahead of increasing regulatory requirements.
KODA's AML System Update
On April 28, KODA announced it had selected Octasolution's AML-Prism system to enhance its risk management capabilities. This step is necessary as South Korea's Virtual Asset User Protection Act is set to take effect on July 19.
New Regulations and Their Implications
The law requires digital asset service providers to tighten internal controls, enhance customer verification, and improve the monitoring of suspicious activities. Additionally, firms must ensure that customer deposits are kept separately from operational funds for investor protection.
Market Reaction to Regulatory Changes
KODA expressed confidence that the system upgrade is crucial to meet the growing institutional demand for compliant custody solutions. This move reflects a wider industry trend where global custodians are also investing in compliance infrastructure.
KODA's upgrade illustrates the growing attention to regulatory compliance in South Korea's crypto industry, aimed at restoring investor confidence following past disruptions.
