íàçâàíèå

Korean Regulators to Probe Bank AML Measures for Crypto Exchanges

Korean Regulators to Probe Bank AML Measures for Crypto Exchanges

Two South Korea financial regulators are reportedly launching a probe into domestic banks over their implementation of anti-money laundering procedures for cryptocurrency exchanges.

According to a report from Yonhap, the Financial Intelligence Unit and Financial Services Commission (FSC) will launch the inspection starting next month at banks offering corporate accounts to cryptocurrency exchanges.

The investigation, according to the report, follows a previous mandate from financial watchdogs in South Korea that domestic cryptocurrency exchanges may only resume operation with a real-name verification system integrated with domestic banks.

As reported by CoinDesk, the FSC announced in January that, from the end of the month, banks would no longer be allowed to service virtual accounts for investors at cryptocurrency exchanges, an effort that sought to prevent anonymous cryptocurrency transactions from being used in money-laundering activities.

Based on the new rules, financial institutions in South Korea have rolled out self-implementation of real-name verification with more major exchanges, while reportedly closing doors to smaller firms.

The new probe comes as the South Korea government is widening its efforts to ensure anti-money laundering mandates are well executed across the country's financial system. Previously, a report from the Korea Customs Service indicated that cryptocurrency had allegedly facilitated some of a noted $600 million unregistered capital flow.

Korean won and cryptos image via Shutterstock

22.03.2018 / 05:55 41
South Korean Prosecutors Raided Three Seoul-Based Crypto Exchanges Last Month South Korean Prosecutors Raided Three
Three crypto exchanges have been raided last month, computers and records taken after an investigation showed suspicious transfers of funds.
Three South Korean Crypto Exchanges Raided for Diverting Funds Three South Korean Crypto Exchanges
South Korean prosecutors have searched the offices of three cryptocurrency exchanges suspected of buying bitcoin with money stolen from customers’
3 Korean Cryptocurrency Exchanges Raided in Embezzlement Inquest 3 Korean Cryptocurrency Exchanges
Three South Korean cryptocurrency exchanges have reportedly been raided by prosecutors suspecting embezzlement of user funds. Korean publication
South Korea Raids 3 Crypto Exchanges in Embezzlement Probe South Korea Raids 3 Crypto Exchanges in
South Korean prosecutors raided three cryptocurrency exchanges this week over suspicions that staff embezzled funds from customers' accounts,
South Korea Regulators Considering Reversal of ICO Ban: Report South Korea Regulators Considering
Nearly six months after a blanket ban on ICO (initial coin offering) fundraising, South Korean regulators are reportedly planning to allow ICOs,
Korea’s Mandatory Crypto Real-Name System Neglected – 19% Conversion Rate Korea’s Mandatory Crypto Real-Name
South Korea’s real-name system for cryptocurrency trading has been enforced for over a month, but most accounts have not been converted to the new
Comments (0)
Add a comment
Comment on