Korean FSC to Launch Virtual Asset Division Within KoFIU

​Fazzaco learned that South Korea’s Financial Services Commission (FSC) was intended to launch a virtual asset division within the Korea Financial Intelligence Unit (KoFIU) as early as next month, which was planned to oversee the adoption and implementation of Financial Action Task Force (FATF) recommendations on financial activities in connection with digital assets and virtual asset service providers.

Wanna be the Next Cover Person of Fazzaco Magazine?

According to the revised Special Financial Transaction Information Act, effective in March with a six-month grace period, virtual asset service providers are required to register with KoFIU, and comply with basic AML requirements on customer due diligence, suspicious transaction reporting, and real-name accounts by September 24.

Reportedly, most crypto exchanges in Korea are expected to have to shut down due to their failure to form partnerships with banks as needed to meet real-name account requirements being imposed under the new rules. Currently, some banks have teamed up with certain crypto exchanges, enabling them to earn commission profits by delivering real-name bank accounts.

Furthermore, the new rules which will come into effect next month require foreign virtual asset service providers to be registered as well.