Cryptocurrency exchanges imposed anti-money laundering obligations from the 25th

From the 25th, virtual asset operators will be obligated to prevent money laundering. Users should check the status of the report by the virtual asset business operator, and take care when the virtual asset business unit collects the resident registration number before the report is accepted.

On the 16th, the Financial Services Commission announced that the revised bill of’Enforcement Decree of the Act on Reporting and Use of Specific Financial Transaction Information, etc.’ has been resolved by the Financial Services Commission. The amendment to the Enforcement Decree specifically contains the matters entrusted by the Enforcement Decree in relation to the obligation to prevent money laundering of virtual asset business operators in the Specific Financial Information Act (Special Fee Act), which takes effect on the 25th.

Anyone who intends to conduct a virtual asset business in the future must report to the Financial Information Analysis Institute (FIU) in advance, and existing business operators must complete the report within 6 months from the 25th when the amendment is applied. If an existing business operator does not file a report by September 24 of this year or continues to operate while the report has not been accepted, an unreported business operator will be sentenced to imprisonment for not more than 5 years or a fine of not more than 50 million won.

Anti-money laundering obligations imposed on virtual asset providers include customer verification and suspicious transaction reporting. However, in consideration of the difficulty in fulfilling the obligation to verify customers and report suspicious transactions prior to acceptance of the report, existing virtual asset operators should fulfill their obligations to prevent money laundering after receiving the report.

From March 25 next year, financial authorities must also inspect and supervise the obligation to provide information when transferring virtual assets. Customers using cryptocurrency exchanges, etc., should check the reporting status of the business operator. In addition, as there is a possibility that some existing business operators may close their business without reporting it, the Financial Services Commission requested that customers check the status of reports and business continuity of existing business as much as possible so as not to suffer damages related to this.

If personal information such as resident registration number collected by a virtual asset business operator is used or provided for other purposes, it is subject to imprisonment for not more than 5 years or a fine of 50 million won or less in accordance with the Personal Information Protection Act.