Sequel to this, the Korean regulators released a new law concerning anti-money laundering. This new law applies to mainly foreign cryptocurrency exchanges.
The Korea Financial Intelligence Unit (KFIU) is on its toes to ensure that cryptocurrency exchanges, that want to operate in their jurisdiction, are complying with the Anti-Money Laundering regulations.
According to the authorities, this is necessary to guard “criminals” from making or covering suspicious activities with anonymity in cryptocurrency.
On this note, the regulators mandated the cryptocurrency exchanges to register and meet the necessary requirements before 25th of September. This will allow them to get certificates on information security, so they can continue their operations.
Otherwise, the KFIU will block their websites from being available in South Korea. Furthermore, such defiance is punishable by “five years of imprisonment or a maximum fine of 50 million won (US$43,455)”
The Financial Services Commission remarked thus when interviewed by Korean Herald, “From Sept. 25, coin operators based outside South Korea will be banned from serving local customers if they haven’t received authorization from financial regulators.”
As of the time of writing this report, no foreign cryptocurrency exchange has done this registration. However, some have been showing the possibilities of complying.