South Korean Regulators To Sanction Errant Exchanges Flouting AML Rules Last Updated: 10 March 2021 In a bid to curtail anti-money laundering (AML) and Know Your Customer (KYC) violations, financial regulators in South Korea are introducing penalties to regulate cryptocurrency exchanges or virtual assets service providers (VASPs), as they’re known in the country. This announcement was released by South Korea’s Financial Services Commission (FSC) on Wednesday. Penalties For Crypto Exchanges Or VASPs According to a revised proposal for the regulation of crypto exchanges, any organization that fails to take proper extensive data collection and identity verification measures would be subject to heavy fines. This news comes a day after Bithumb toughened up its AML rules. The South Korean exchange placed restrictions on a number of traders from countries that are on the FATF’s monitoring list. The exchange has also signed up multiple third parties to help with the implementation and compliance of AML best practices.