South Korean authorities will require crypto exchanges to disclose customer data

The financial services authority (FSC) of South Korea is preparing amendments to the law to oblige service providers in the field of virtual assets (VASP) to disclose the identity of customers, writes CoinDesk.

Changes are proposed to the law on "Transfer and use of established information about financial transactions" in order to prevent money laundering. The law defines VASP as "commercial entities that are involved in the purchase and sale of virtual assets", as well as custodial service providers and brokers.

Under the new rules, vasps will have to use real-name accounts when making a financial transaction with a client. In addition, the VASP will have to open an account in a real name in a financial institution and obtain a certificate from the Korean information security Agency.

The proposal is aimed at meeting the requirements of the financial action task Force on money laundering (FATF) and should not be considered an attempt to include cryptocurrencies in the current financial regulation regime, the FSC noted. The new rules are expected to take effect on March 25, 2021.

It was recently announced that the Bank of Korea will test its digital currency next year.