Strengthening of Virtual Asset Business Operator Review Standards

The reporting system for virtual asset business operators has been strengthened since the 20th, incorporating substantial reviews that include major shareholder eligibility, financial soundness, organization and personnel, IT infrastructure, and internal controls. The Financial Services Commission announced on the 11th that the amendment to the Enforcement Decree of the Act on Reporting and Use of Specific Financial Transaction Information was approved at the Cabinet meeting. The amended law was promulgated on February 19, and the strengthened reporting system and sanctions for retirees have been in effect since the 20th. The scope of the review has been expanded to include major shareholders, and operators must verify not only direct shareholders but also special relationships and upper controlling relationships. Virtual asset business operators must meet the requirement of a debt ratio of 200% or less and must not have any defaults in the past three years. Existing operators will have a one-year grace period for the application of these requirements. Reporting is linked to the anti-money laundering system, and basic obligations such as customer verification and suspicious transaction reporting must be fulfilled. There must be at least four personnel engaged in anti-money laundering tasks, and IT infrastructure must be located domestically. The process for changing reports has shifted to prior control, and the criteria for transactions between reported virtual asset operators have been expanded. The government has presented cases of suspected regulatory evasion, indicating that transactions with overseas exchanges and personal wallets will be managed differently based on risk levels. The Financial Intelligence Unit held a briefing and emphasized the need to assess the soundness of operators and major shareholders.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.