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Privacy coins ban

South Korean Financial Regulator Confirms Privacy Coin Delistings- Adds New Guidelines to Report Unusual Transactions

22/02/2021 by Idelto Editor

South Korean Financial Regulator Confirms Privacy Coins' Delisting — Adds New Guidelines to Report Unusual Transactions

South Korean financial watchdogs are about to start overseeing crypto-related activities in the nation, and additional barriers for exchanges keep appearing. Moreover, one of the South Korean regulatory bodies codified the measures announced last year on privacy coin listings.

No Major Domestic Exchanges Can List a Privacy-Centric Crypto-Asset

According to Electronic Times, the Financial Services Commission’s Financial Intelligence Unit (FIU) confirmed that all privacy coins would be delisted from the domestic cryptocurrency exchanges.

The watchdog argued that difficulties in determining transaction details carry a high risk of money laundering through such cryptocurrencies.

Although the FIU just confirmed it, the local press first reported the measure in November 2020. The FIU pledged to ban privacy coins such as monero (XMR) and zcash (ZEC).

South Korean platforms such as Okex have since been forced to delist several privacy coins to align with the anti-money laundering (AML) rules.

However, as of press time, no major South Korean crypto exchanges have any privacy-centric cryptos listed. The Financial Intelligence Unit is the regulatory body responsible for dealing with AML matters.

Reporting ‘Unusual’ Transactions Within Three Working Days

Also, per Yonhap Times, the unit will ask domestic exchanges to flag and report any unusual transactions on their platforms “within three working days.” According to the FIU guidelines, the reports should specify the transaction’s values in fiat Korean won (KRW).

The regulatory body expects policy exchanges through a protection management system, which will gather information such as banking data and social security numbers. In fact, the unit wants that banks are also responsible for making exchanges compliant with AML rules.

The South Korean crypto bill will become effective in March 2021, after clearing a series of delays and discussions on who should oversee all the crypto industry from a legal perspective.

Also, the coronavirus pandemic halted discussions, as other bills were granted a significant priority on the pipeline.

What do you think about this news ahead of the South Korean crypto bill deadline? Let us know in the comments section below.

Filed Under: anti-money laundering, Asia, crypto bill, English, News Bitcoin, Privacy coins ban, Regulation, South Korea, south korea cryptocurrency, South Korean Won

South Korea To Ban Crypto Exchanges From Handling Privacy Coins

06/11/2020 by Idelto Editor

South Korea is to ban crypto exchanges from handling digital assets it considers “dark coins”. Regulator Financial Services Commission (FSC) is specifically targeting privacy coins such as dash, monero and zcash.

● The ban is with effect from March 2021. In an update to crypto regulations under the Special Payments Act, the FSC accuses privacy coins of facilitating money laundering activities.

● It says that transactions involving privacy-oriented coins like monero (XMR) or zcash (ZEC) are hard to trace for law enforcement agencies, including the Commission itself.

● That’s because such virtual currencies use complex techniques to obscure their transactional records – mainly for the purpose of hiding them from unwanted attention, such as law enforcement’s.

● The FSC is also directing that crypto exchanges implement strict know-your-customer (KYC) and anti-money laundering (AML) policies. It requires that the platforms check these details against government-issued documents such as IDs or passports.

● The exchanges will have to report their operations to authorities six months following implementation of the guidelines.

● South Korean platforms such as Okex have since been forced to delist several privacy coins to align with the Financial Action Task Force (FATF) rules around money laundering.

● In the U.S., the Internal Revenue Service (IRS) recently awarded a contract worth $1.25 million to Chainalysis and data forensics company Integra Fec to provide it with tools that can break the privacy-focused coin, monero.

What do you think about the planned privacy coins ban in South Korea? Let us know in the comments section below.

The post South Korea To Ban Crypto Exchanges From Handling Privacy Coins appeared first on Bitcoin News.

Filed Under: anti-money laundering, Chainalysis, crypto exchanges, English, Integra Fec, News Bitcoin, Okex, Privacy coins ban, Regulation, South Korea, South Korea Financial Services Commission (FSC), US Internal Revenue Service (IRS)

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