#SouthKoreaCryptoPolicy New regulations for cryptocurrency exchange

South Korea's cryptocurrency exchange laws are stringent, including government registration and other procedures supervised by the Financial Supervisory Service of South Korea (FSS).

The South Korean government restricted the use of anonymous accounts in cryptocurrency trading in 2017 and banned local financial institutions from conducting Bitcoin futures transactions, following reports of suspicions of a ban. Additionally, the Financial Services Commission (FSC) tightened information requirements for banks with accounts on cryptocurrency exchange platforms in 2018.

The new laws restrict cryptocurrency trading to "real-name bank accounts," which means that the operator (client) must create a real-name account at the same bank as their cryptocurrency operator to deposit or withdraw funds from their electronic wallet. According to standard anti-money laundering and counter-terrorism financing (AML/CFT) rules and structured transaction reporting requirements, both the bank and the operator must verify the identity of the operator.

The South Korean government amended existing legislation in 2020, extending mandatory anti-money laundering and counter-terrorism financing obligations to all exchanges in South Korea and requiring companies to obtain a license to operate from the Financial Services Commission's Financial Intelligence Unit by the end of September 2021.