South Korea is taking a significant step towards strengthening its regulatory framework for cryptocurrencies. The National Assembly has approved amendments that will enhance scrutiny of major shareholders in the crypto sector, aiming to bolster anti-money laundering efforts and improve oversight of virtual asset service providers. The analytical report published in the material substantiates the following: these changes are expected to create a more transparent environment for investors and increase trust in the digital asset market.
Amendments to the Act on Reporting and Using Specified Financial Transaction Information
The amendments to the Act on Reporting and Using Specified Financial Transaction Information were passed during a plenary session on Thursday. This legislative change empowers the Financial Intelligence Unit (FIU) to conduct thorough background checks on major shareholders, in addition to existing requirements for executives.
New Regulations and Conditional Licenses
With these new regulations, the FIU can issue conditional licenses to firms, ensuring they adhere to stricter governance standards. This move is expected to lead to ownership caps for crypto exchanges, bringing them in line with the regulatory frameworks governing securities markets.
Commitment to a Safer Cryptocurrency Environment
The changes reflect South Korea's commitment to creating a safer and more transparent environment for cryptocurrency operations.
In a related development, Gate US has expanded its cryptocurrency trading services to 30 states, reflecting the growing acceptance of digital assets. For more details, see read more.
