To maintain regulatory standards, the Financial Intelligence Unit (FIU) of South Korea has announced a strict scheme of expulsion of cryptocurrency exchanges not abiding by the rules. The initiative was announced on February 12th as part of FIU’s 2024 agenda before the anticipated laws were passed in July 2024.
The Virtual Asset User Protection Act will thoroughly evaluate exchanges based on anti-money laundering schemes, cybersecurity measures, and compliance with the other regulatory frameworks.
Furthermore, the proposed framework includes establishing a real-time suspicious transaction suspension system. This system aims to facilitate proactive intervention in financial crime investigations by enabling the suspension of suspicious transactions as they occur.
South Korea’s proactive approach represents its resolution to create a safe and transparent cryptocurrency market system. The country seeks to safeguard investors’ interests and benefit consumer protection in the growing cryptocurrency space by strengthening regulatory oversight and instituting strict assessment tools.
These regulatory activities have been mostly circular to retain the risk management associated with digital assets and maintain the innovative spirit and compliance within the cryptocurrency economy. Looking ahead, South Korea will be implementing these measures.
This step aligns with South Korea’s strategy to become a world leader in cryptocurrency regulation, benefiting industry players and investors. The crypto environment constantly changes, and regulatory frameworks are becoming a basis for maintaining market stability and integrity.
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