The law on special provisions is due to enter into force on September 25 in South Korea, which has caused many exchanges to panic. Popular crypto-banking platform Sandbank is one of them, with the company recently revealing the hazy regulatory picture that is now taking shape.
According to reports, the registration conditions were difficult to fulfill for small exchanges. In fact, Upbit was the only exchange to meet these requirements. Part of the “Big Four” in South Korea alongside Bithumb, Coinone and Korbit, UpBit has already submitted an activity report with the Korean Financial Intelligence Unit [FIU].
The lack of clarity is uniform
Crypto-trading platforms that fail to register their businesses as digital asset service providers before the deadline expires will be banned outright. However, as Sandbank noted, “there is no clear and authoritative interpretation on the part of the agencies involved. It is still unclear whether Sandbank is a virtual asset operator. “
It turns out that this is a common problem among local businesses offering deposit / loan services.
In terms of its next steps, Sandbank Noted,
“Sandbank is preparing to acquire Information Management System (ISMS) certification certification and is currently awaiting an assessment after applying for certification. ISMS certification is the first condition among the registration requirements of virtual asset businesses.
Meanwhile, confusion among the masses, as well as crypto firms, continues to mount. Especially when those in charge of the regulator are sending mixed messages.
According to the premises reportsChief Financial Services Commission (FSC) candidate Koh Seung-Beom on Wednesday “rejected” cryptocurrencies as financial assets. However, a day later, the agency announced the establishment of an independent office to further strengthen the supervision of virtual assets, operators. It will also closely detect possible money laundering.
FSC arm responsible for anti-money laundering actions, Korea Financial Intelligence Unit [KFIU], will take over the new office. The report added,
“The” Cryptocurrency Asset Monitoring Office “will be responsible for monitoring any suspicious financial activity on cryptocurrency assets, deciding on license extension for cryptocurrency operators, and exploring for ways to improve investor protection rules. “
KIFU will also house a policy management planning division that has yet to be launched. The FSC official said,
“The FSC’s decision to create an independent office within KFIU with increased staff is aimed at auditing and monitoring cryptocurrency-related financial activities and preventing potential money laundering.”
Unclear regulatory efforts remain a problem in South Korea. As the registration deadline draws closer, the exchanges are trying to come up with a plan B as regulators pay no attention to their woes.