[ad_1]
According to a November 3 announcement by the South Korean Financial Services Commission, or FSC, virtual asset service providers within the country will no longer be able to manage digital assets that present a high risk of money laundering money. These updates were made as part of the guidelines under the Special Payment Act, regulation that specifically covers the legality of cryptocurrencies in South Korea. The FIU specifically called “dark coins”, which are privacy-oriented cryptocurrencies, to have records. of transactions that are reportedly difficult for the group to track. This could potentially affect the use of privacy coins such as Zcash (ZEC), Monero (XMR) and Dash (DASH).
Financial watchdog amendments to the Special Payment Act are expected to apply starting March 2021. The cryptographic law requires existing exchanges to use a sufficient number of Know Your Customer, or KYC, and AML, or AML policies. Exchanges must also report their trades within six months of implementing the law. In addition to not managing privacy coins, virtual asset service providers are required to confirm the real names of their customers by verifying them against personal data, such as national identity numbers.
Many cryptocurrency exchanges in the country already don’t list privacy coins due to existing international regulations. In September 2019, the South Korean arm of cryptocurrency exchange OKEx removed ZEC, XMR, DASH, Horizen (ZEN) and Super Bitcoin (SBTC), citing guidelines set by the Financial Action Task Force. Local cryptocurrency exchange Upbit announced the same month that it would cease trading support for three privacy-focused cryptocurrencies.
