South Korea to Impose Heavy Penalty on Cryptocurrency Violations

The Financial Services Commission of Korea (FSC) introduced new penalty standards for cryptocurrency service providers today. The financial regulator is planning to impose heavy penalties on digital exchanges in the country if they fail to report suspicious transactions.

According to the official announcement, FSC has asked local crypto exchanges to keep a separate record of the cryptocurrency transactions of the customers. The regulator instructed virtual assets service providers (VASPs) to verify the identity of their clients.

“Under the revised Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term, financial institutions and VASPs will be subject to penalties if they are found to be in violation of internal control duties (failure to report suspicious transaction activities), data maintenance duties (failure to keep relevant data on suspicious transactions), and duties specifically pertaining to VASPs (failure to keep separate management of customers’ transactions records). The revised regulation also introduces a new penalty abatement of fifty percent. For small-scale entities, penalty abatement can be granted in excess of the fifty percent limit,” FSC mentioned in the official announcement.

According to a recent report published by the Korea Herald, South Korean cryptocurrency Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Bithumb is restricting crypto trading accounts held by users staying in regions that have not adopted anti-money laundering measures.

Cryptocurrency Tax Rule

Finance Magnates earlier reported about a delay in South Korea’s proposed crypto income tax rule. The National Assembly of South Korea asked for a delay in the crypto tax rule to push the implementation to January 2022. The country is planning to introduce a regulatory framework for cryptocurrency users in the country, but some investors are unhappy with the short time-frame given by the Government for the implementation of rules.

According to a report published by Newspim, Seoul Metropolitan Police Agency officially brought charges against the Chairman of local crypto exchange, Coinbit and two other unnamed executives for manipulating the cryptocurrency market through fake trading volumes on the digital exchange.