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In March, South Korea passed new legislation to strengthen the supervision of virtual assets. The new law, however, has resulted in pushback by banks and concerns that many of the altcoins and cryptocurrency exchanges that have sprung up in South Korea could be put out of business.
Under the new legislation all virtual asset management providers, which includes cryptocurrency exchanges and other virtual asset service providers, must register with the Korea Financial Intelligence Unit (KFIU) to operate in South Korea. The KFIU is the arm of the Financial Services Commission (FSC) responsible for anti-money laundering and exchanges would be required to report suspicious financial activity to it.