South Korea To Investigate Banks in Cryptocurrency-Linked AML Clampdown

South Korea's financial regulators on Wednesday announced they will carry out inspections on local banks’ operations with cryptocurrency exchanges to check their compliance with anti-money laundering (AML) guidelines.

The joint inspection by the Financial Intelligence Unit (KoFIU) and the Financial Supervisory Commission (FSC) will be requesting information regarding corporate accounts of crypto exchanges. Next month, the regulators will then examine whether banks’ activities with cryptocurrency operators are adhering to anti-money laundering rules, according to local news agency Yonhap.

South Korean officials are also looking at ways to reduce risks associated with cryptocurrency trading in the country, which could include shutting down institutions that use such currencies. The financial watchdog will be involved in the process of severing any illegal links.

As reported by Finance Magnates earlier in January, the FSC launched an investigation into local banks providing accounts to clients dealing in Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term.

The total number of accounts owned by exchanges is a mere 111, but the combined funds held in those accounts are estimated to be 2 trillion won ($1.8 billion). Each of these exchange accounts have themselves generated millions of virtual accounts.

The latest development comes amid Seoul’s shift toward tighter ‎regulation for ‎cryptocurrencies. South Korea - which has been ‎particularly seized by Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term mania — has ‎also been scrutinizing ‎digital currencies exchanges, which were recently hit with massive ‎tax ‎demands as part of ongoing efforts to control potential ‎systemic risks. ‎