Vetting for Crypto Executives: South Korea’s Financial Services Commission (FSC) has proposed significant changes to its virtual asset service provider (VASP) reporting requirements, aiming to regulate the employment of executives within crypto companies. This amendment would mandate regulatory approval for executives joining crypto firms, affecting personnel changes and VASP license renewals if approved.
The proposed amendment targets crypto executives, requiring regulatory approval before they can start working in crypto companies.
This move aims to provide the FSC with authority over personnel changes in the crypto industry.
Under the proposed rules, companies seeking to renew their VASP licenses would face scrutiny regarding their personnel. The FSC
would gain the power to suspend license reviews if authorities are investigating the company’s personnel for any reason.
Before the amendment becomes law, the FSC is seeking public feedback until March 4, 2024. The proposed changes are expected to be
effective by the end of March 2024, following reviews and resolutions by relevant authorities.
South Korea has been moving towards tighter regulations in its crypto space. Recent initiatives include legislation concerning crypto mixers to combat money laundering and measures to restrict locals from buying crypto with credit cards to prevent illegal outflows and
money laundering.
Recently, South Korea’s government took a decisive step to address the increasing risks of money laundering facilitated by crypto mixers. The country’s financial authorities plan to implement regulations specifically targeting these digital tools, which have become popular among illegal organizations for concealing illicit transactions.
The Need for Regulation
In light of the vulnerability of the financial system to money laundering, South Korea aims to restrict transactions using mixers by virtual asset business operators. Additionally, the country plans to monitor global trends and engage in international discussions to formulate a strategy against the misuse of crypto mixers.
This approach aligns with recent actions by the US Treasury Department’s FinCEN, which imposed stringent requirements on domestic
financial institutions involved in transactions with cryptocurrency mixers.
Besides that, the FSC has banned crypto users in South Korea from using credit cards to purchase cryptocurrencies, citing concerns about the
illegal outflow of domestic funds and other related risks.
According to the regulator, this move addresses concerns regarding the illegal outflow of domestic funds overseas and mitigates
risks associated with money laundering and speculative activities.
The FSC expressed worries about the increasing use of credit cards for payments on overseas virtual asset exchanges, raising
concerns about money laundering and speculation.
South Korea’s Financial Services Commission (FSC) has proposed significant changes to its virtual asset service provider (VASP)
reporting requirements, aiming to regulate the employment of executives within crypto companies. This amendment would mandate regulatory approval for executives joining crypto firms, affecting personnel changes and VASP license renewals if approved.
The proposed amendment targets crypto executives, requiring regulatory approval before they can start working in crypto companies.
This move aims to provide the FSC with authority over personnel changes in the crypto industry.
Under the proposed rules, companies seeking to renew their VASP licenses would face scrutiny regarding their personnel. The FSC
would gain the power to suspend license reviews if authorities are investigating the company’s personnel for any reason.
Before the amendment becomes law, the FSC is seeking public feedback until March 4, 2024. The proposed changes are expected to be
effective by the end of March 2024, following reviews and resolutions by relevant authorities.
South Korea has been moving towards tighter regulations in its crypto space. Recent initiatives include legislation
concerning crypto mixers to combat money laundering and measures to restrict locals from buying crypto with credit cards to prevent illegal outflows and money laundering.
Recently, South Korea’s government took a decisive step to address the increasing risks of money laundering facilitated by crypto mixers. The country’s financial authorities plan to implement regulations specifically targeting these digital tools, which have become popular among
illegal organizations for concealing illicit transactions.
#South #Korea #Proposes #Vetting #Crypto #Executives
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