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South Korea is about amend its Foreign Exchange Transactions Act.
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The proposed amendment would increase oversight of crypto transactions.
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In South Korea, suspicious transactions increased by 48.8% last year.
The South Korean government is looking to amend the Foreign Exchange Transactions Act. The amendment would require that virtual assets service providers involved in cross-border transaction register under the new Act, and submit monthly reports of each individual user’s transaction details to Bank of Korea.
Reports state that Choi Eun Seok, a People Power Party (PPP) member in the National Assembly, sponsored the amendment bill. He cited the need to combat money laundering and foreign exchange crime related to cryptography. Choi’s proposal focuses on creating a monitoring system for crypto transactions.
The lawmaker believes that the lack of oversight is the reason for the increase in illegal transactions and money-laundering in South Korea. He believes that the Korean government can curb the growing danger by regulating and overseeing crypto and FinTech service providers.
Read also: South Korea’s Crypto Regulation
Choi Sang-mok, Korea’s Minister of Economy and Finance, stated in October that amendments such as the one proposed by a lawmaker would be subject to consultations and a legislative review. According to the Minister’s statement, the ideal time for the implementation of the proposed Act is 2025.
The Korean Financial Intelligence Unit has recently reported an increase in suspicious transactions. According to the FIU these transactions increased by 48.8% compared to last year. The Ministry of Economy and Finance decided to add new definitions for virtual assets and their merchants prior to the amendment’s implementation.
The proposed amendment highlights South Korea’s move towards a more regulated cryptocurrency industry. The region is known for its efforts to create an organized and well monitored cryptocurrency ecosystem. It also focuses on balanced regulation, without stifling innovations.
