The Financial Services Commission said, “The revised bill of the’Enforcement Decree of the Act on Reporting and Use of Specific Financial Transaction Information, etc.’
The Special Money Act imposes an obligation to prevent money laundering, such as customer identification and reporting of suspicious transactions on virtual asset business operators. The virtual asset business entity is obliged to fulfill the obligations specified in the Special Money Act after acceptance of the report. The Financial Services Commission plans to conduct inspections and supervision for violations of obligations after receiving reports from virtual asset business operators.
The Financial Information Analysis Institute recommends that existing virtual asset business owners fulfill their obligations for customer verification, such as verification of resident registration numbers, etc. under the Special Act after receiving reports. The Financial Services Commission said, “If a business operator who has not received a report collects a resident registration number, it is necessary to check the information management status and whether or not the business continues.
The Financial Services Commission warned that the use and provision of personal information such as resident registration numbers collected by virtual asset providers for other purposes is subject to punishment under the Personal Information Protection Act. The Financial Services Commission added that it plans to take prosecution if it is found to be subject to punishment. Violation of the Personal Information Protection Act will result in a sentence of up to 5 years in prison or a fine of up to 50 million won.
The Financial Services Commission also said that the inspection on the performance of obligations under the Special Special Act will be postponed after the report is accepted. He said it was possible to conduct an inspection on the performance of legal obligations. Businesses may be subject to fines and other impositions if violations of the Special Law are detected as a result of the inspection.
Existing virtual asset business operators must complete their business report by September 24, including the grace period. The status of receipt and acceptance of reports can be checked on the website of the Financial Information Analysis Institute. The Financial Services Commission recommended to customers, “Some of the existing businesses are likely to close without reporting, so check the status of reports of existing business operators and whether or not the business continues, and conduct virtual asset transactions to avoid any related damages.”