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Korean Government Announces It Has Reviewed 42 Crypto Operators


coinquora.com 27 September 2021 18:25, UTC
Reading time: ~2 m

  • The Financial Intelligence Unit reveals 42 virtual asset operators have registered.
  • Korean Government to crack down on unlicensed operators.
  • Bithumb, Coinone, Upbit, Corbit have started operating out of 29 virtual asset traders.

Chairman of the Financial Services Commission —  Koh Seung-beom has announced that it has reviewed all 42 domestic crypto companies that have registered under the Anti-Money laundering arm with the Korean Government.

This comes days after the South Korean regulators announced that all crypto exchanges have to register with its anti-money laundering arm by Sept. 24. Therefore, any virtual asset operators who fail to comply will have no option other than to shut down operations in the country.

In this regard, the Financial Intelligence Unit (FIU) on Sept. 26th, revealed that all the 42 virtual asset operators had filed their reports to the government.

To highlight, the 42 virtual asset providers have received the Information Security Management System Certification (ISMS) from the Korea Internet & Security Agency. Even more, out of the 42 companies, Bithumb, Coinone, Upbit, and Corbit are the exchanges that are fully operating now.

Adding more, as of Sept. 21, the companies’ share sums up to 99.9%. With the market share of the undeclared traders standing at 0.1%, the Korean government feels that the possibility of causing damage to virtual asset users is relatively low.

Furthermore, at the moment, about 25 remaining companies are only operating in the coin market after closing the Korean Republic Won (KRW) market operations. In this essence, it clearly shows that the remaining companies failed to obtain the ISMS certificate or they did not apply for it.

Specifically, from the 25th, right after the reporting process is completed, the FSC began to crack down on those virtual currency business operators that were not reported. The authorities intend to check whether the unregistered operators have closed their business. Also, they will clamp down on unlicensed operators.

The FSC said:

“From the 25th, if a business operator conducts virtual asset transactions without filing a report, it is illegal business.” Please withdraw the assets immediately.”

Additionally, it intends to constantly monitor whether existing operators return deposits in KRW. Also, they plan to ensure operators return virtual assets to customers without any hinges.

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