South Korea Cracks Down on Crypto Exchanges by Tightening Regulations
South Korea has unveiled stringent measures to tighten oversight and combat illicit activities in the cryptocurrency sector.
The country’s Financial Intelligence Unit (FIU) recently disclosed its ‘2024 Work Plan,’ emphasizing the need for robust supervision of virtual asset exchanges.
Key initiatives include a preemptive transaction suspension system to swiftly address suspicious transactions and the expansion of reporting requirements to cover major shareholders and individuals with regulatory violations history.
These moves align with international best practices, including the adoption of Financial Action Task Force (FATF) guidelines.
The regulatory efforts coincide with South Korea’s plans to introduce strict legislation governing digital assets, aiming to curb market manipulation and illegal trading practices.
Penalties for non-compliance range from fines to potential life imprisonment, underscoring the seriousness of adherence within the cryptocurrency ecosystem.
As South Korea takes proactive steps to regulate virtual assets, stakeholders are urged to prioritize compliance to ensure market integrity and security.