South Korea announces plans to implement stricter AML and KYC measures starting June 1, 2025, leading to a lift on the crypto trading ban for institutions.
Stricter Regulations for Institutional Investors
The Financial Services Commission (FSC) of South Korea has announced new regulations that will significantly alter crypto trading policies. These measures are aimed at enhancing AML and KYC standards to ensure safer financial transactions and reduce money laundering risks.
Market Access Resumes for Institutions
The established rules will allow institutions such as universities and listed companies to legally engage in crypto trading, marking a substantial shift in the South Korean crypto landscape. There is hope that this will boost investor confidence and reduce illegal activities.
Impact of the 2017 Ban on Current Changes
The initial crypto ban imposed in 2017 due to speculative trading served as a precursor to these current changes. Previous AML measures were effective and now serve as a foundation for the new regulations. Updated rules are expected to improve market transparency and attract international investments.
In conclusion, the new measures set to take effect in 2025 are likely to significantly transform the cryptocurrency market in South Korea and affect international investments.
