South Korea's Financial Services Commission (FSC) is preparing a series of amendments to the current legislation aimed at forcing virtual asset service providers (VASPs) to disclose personal information about their users, CoinDesk has reported.
The amendments have been prepared for the act on "Reporting and Using Specified Financial Transaction Information" in order to prevent money laundering. In the act, VASPs are described are "business entities that engage in the purchase and sale of virtual assets," as well as custody service providers and brokers.
According to the new regulation, VASPs must use accounts based on real names when carrying out a financial transaction with a user. In addition, VASPs must open a real name account with a financial institution and obtain certification from the Korea Information Security Agency.
The proposal aims to meet the requirements of the Financial Action Task Force on Money Laundering (FATF) and should not be considered as an attempt to include cryptos in the current financial regulatory framework, the FSC has said. The new regulation is expected to come into force on March 25, 2021.
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