South Korea Holds Firm On AML For Banks Serving Cryptos

The chief of South Korea’s predominant finance sector regulator has spoken out once more in opposition to banks which have requested exemptions from anti-money laundering compliance guidelines of their contracts with cryptocurrency exchanges.

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  • Eun Sung-soo, the chairman of the Financial Services Commission mentioned yesterday: “Banks ought to use their very own judgement to make selections and apply for [contracts with exchanges], and the Financial Intelligence Unit will overview them based on requirements,” implying that compliance is an easy course of with no exceptions. He additionally informed banks to cease blaming the FSC for making them chargeable for AML, saying that verifying exchanges “is the job of the financial institution.”
  • Cryptocurrency exchanges in South Korea are required to acquire financial institution contracts to supply customers with real-name accounts. Any change that fails to take action after Sept. 24 can be pressured to close down.
  • Since the FSC chairman’s preliminary feedback on AML compliance, banks have turn into extra unwilling to companion with crypto exchanges. Only 4 exchanges — Upbit, Bithumb, CoinOne and Korbit — amongst round 60 have acquired financial institution contracts and are anticipated to proceed buying and selling after September.

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