South Korean Government Approves Crypto Anti-Money Laundering Rules, to Take Effect Thursday

It is reported that South Korea's anti-money laundering rules for cryptocurrency businesses will take effect on Thursday. Crypto companies operating in South Korea must register with the country's financial regulator by September, and those that fail to comply will face potential sanctions.

South Korea’s anti-money laundering safeguards for cryptocurrency businesses will take effect Thursday after cabinet officials approved a set of amendments last week, according to the Financial Services Commission (FSC).

Registered virtual asset service providers (VASPs) must submit suspicious transaction reports to the FSC, undergo compliance checks, and verify customer identities starting March 25.

The FSC said crypto companies engaged in custody, trading, sales, exchanges and digital wallet services have a six-month grace period to register with the FSC before facing potential sanctions for violations starting in late September.

The FSC first called for a crypto-focused update to the country’s anti-money laundering framework in November 2020 in an attempt to align with the Financial Action Task Force’s crypto oversight regime.

South Korea's parliament voted in favor of the renewal on March 5. Cabinet officials gave the green light to the law on March 17.