Cryptocurrencies

The regulations regarding cryptocurrency exchanges in South Korea are strict, including government registration and other procedures monitored by the Financial Supervisory Service (FSS) of South Korea.

The South Korean government imposed restrictions on the use of anonymous accounts in cryptocurrency trading in 2017, prohibiting local financial institutions from hosting Bitcoin futures transactions, which raised concerns about an impending ban. The Financial Services Commission (FSC) also tightened reporting requirements for banks with accounts at cryptocurrency exchanges in 2018.

The new laws restrict cryptocurrency trading to "customer-named bank accounts," meaning that traders (customers) must create an account in their name at the same bank that the cryptocurrency trader uses to deposit or withdraw funds from their e-wallet. According to standard anti-money laundering and counter-terrorism financing rules and regulated transaction reporting requirements, both the bank and the trader must verify the trader's identity.

In 2020, the South Korean government amended existing legislation, expanding the mandatory obligations for anti-money laundering and counter-terrorism financing to include all South Korean exchanges and requiring companies to obtain a license to operate from the unit.