Advertisement

Advertisement

Privacy coins to be banned in South Korea crypto exchanges next year

Privacy coins to be banned in South Korea crypto exchanges next year

Quick take

1 minute read

  • According to an announcement in November, the Financial services commission in South Korea won't be dealing with any digital assets that suggest such risks as Money laundering.
  • These updates were made as a part of the guidelines under the special payment act in South Korea.

According to an announcement that came out earlier this month in November, the Financial services commission in South Korea won't be dealing with any digital assets that suggest such risks as Money laundering.

These updates were made as a part of the guidelines under the special payment act in South Korea. This is a kind of regulation that particularly looks over the legal side of digital assets in the nation. 

Interestingly, so-called “dark coins“ were particularly highlighted. This is because they have transaction records that are allegedly difficult for the group to trace. As a result, it could potentially have an effect on the usage of privacy coins including Monero and Dash.

It is believed that the amendments to the special payments act in South Korea are expected to be enforced in March next year. The bill related to cryptocurrency calls for current platforms in the country to employ efficient Know your customer and anti-money-laundering policies. Furthermore, platforms must be able to adapt their platforms within six months of the integration of this law. Moreover, virtual asset service providers are required to confirm the legitimate real names of their customers on top of not adding privacy coins. They will do this by verifying them in comparison to personal data, National identity numbers for example.

Due to the current regulations of privacy coins globally, many groups in the country are already avoiding the asset class and so they are guidelines to the letter already.

In September last year, the OKEx platform removed Zcash, Dash and more from its platform to follow the guidelines that were set out by the financial action task force.

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

You can share this post!

Advertisement