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South Korea is about to ban cryptocurrency exchanges from handling digital assets it considers “dark coins”. The Regulator Financial Services Commission (FSC) specifically targets privacy coins such as dash, monero, and zcash. South Korean platforms like Okex have been forced to remove several privacy coins
● The ban has been in effect since March 2021. In an update to the cryptographic regulations under the Special Payments Act, the FSC accuses privacy coins of facilitating money laundering activities.
● Says transactions involving privacy-oriented coins like monero (XMR) or zcash (ZEC) are difficult for law enforcement, including the Commission itself, to track down.
● This is because such virtual currencies use complex techniques to hide their transactional records, primarily for the purpose of hiding them from unwanted attention, such as that of law enforcement.
● The FSC is also stipulating that cryptocurrency exchanges implement strict KYC (Know-Your-Customer) and Anti-Money Laundering (AML) policies. It requires platforms to check these details against government-issued documents such as IDs or passports.
● Exchanges will have to report their operations to the authorities six months after implementation of the guidelines.
● South Korean platforms like Okex have since been forced to remove several privacy coins to align with the Financial Action Task Force (FATF) rules on money laundering.
● In the United States, the Internal Revenue Service (IRS) recently awarded a contract worth $ 1.25 million to Chainalysis and data analytics firm Integra Fec to provide it with tools to break the privacy-focused coin. , monero.
What do you think about the planned privacy coin ban in South Korea? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
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