Cryptocurrency exchanges in South Korea must strengthen compliance controls

14th of August, 2023

After meeting with representatives of five popular crypto exchanges (Upbit, Bithumb, Coinone, Corbit, Gopax), the South Korean authorities decided to support VASP in strengthening law enforcement and tightening measures against crime. The official document talks about strengthening enforcement and making enforcement more predictable.

In response to the surge of illegal activities in the digital asset market and the lack of legal protection for investors, the South Korean government has formed a special unit in charge of fighting cryptocurrency crimes. This joint cryptocurrency crime center will consist of thirty investigators provided by the Prosecutor's Office, the Financial Supervisory Service, the National Tax Service, and the Customs Service. The aim of this initiative is to provide a more effective response to illegal cryptocurrency activities and to protect the interests of investors.

The Prosecutor's Office explained that the established center will serve until the market is subject to official regulation in accordance with the law.

The center will focus on investigations related to highly volatile crypto assets, illegal trading practices, tax evasion, unauthorized foreign currency transfers, and concealment of criminal profits and money laundering.

In June 2023, the South Korean parliament passed the Digital Asset User Protection Act. This document includes 19 different laws related to cryptocurrencies. The law establishes liability for offenses such as the use of insider information, market manipulation, and unfair trading practices.

From the beginning of January 2024, the FCS has required firms to disclose the presence of digital assets on their balance sheets. This will promote a more transparent and responsible accounting of cryptocurrency assets in the country.

Intelligent Solution Group specialists provide full turnkey support for clients' crypto business. We help with company registration and obtaining a license to conduct crypto activities, open accounts in banks and payment systems, and ensure compliance control.

Every year the regulation of crypto activities increases in different countries, and our team is ready to effectively respond to these changes and ensure the safety and success of your business. We will provide professional support so that your activities are transparent, efficient and legal, and you can focus on developing your business.