South Korea to Bring Crypto Exchanges Under Direct Regulation

The Financial Intelligence Unit (FIU) of South Korea’s Financial Services Commission has revealed plans to bring cryptocurrency exchanges under its direct regulation.

On Aug. 7, Business Korea reported on the FIU’s decision to shift away from its current practice of regulating crypto exchanges indirectly by providing administrative guidance to domestic banks.

A shift away from indirect regulation

In order to bring crypto exchanges into the country’s regulatory system, an FIU official revealed on Aug. 6 that the South Korean government will introduce a crypto exchange licensing system, as recommended by the Financial Action Task Force (FATF). This will reportedly enhance the transparency of cryptocurrency transactions. 

At a public hearing held at the National Assembly Member’s Office in Seoul, Lee Tae-hoon — who serves as head of administration and planning at the FIU — stated:

“If an amendment to the Act on Reporting and Use of Certain Financial Transaction Information,…