Many countries around the world are imposing strict laws or regulations on crypto and crypto exchanges. Besides, many countries are giving time for registration of illegal exchanges and have announced to ban illegal exchanges or take them out of the market. South Korea is one of them. Because recently the country's Financial Intelligence Unit (FIU) has publicly announced that it will tighten scrutiny on crypto exchanges in their country. And the authorities have also announced that any inappropriate platforms that exist in the country's local markets will be kicked out from this year.
The country's Financial Intelligence Unit (FIU) published a report in this regard yesterday. They have announced a wide range of measures to weed out inappropriate platforms, one of which is expanding the scope of the screening process in the crypto market. Therefore, they declared that they always wanted to prevent unqualified exchange from entering the national economy.
In particular, they have announced that they will try to prevent inappropriate and ineligible exchanges. That is why the country's regulator has already expressed its intention to introduce a pre-emptive trading suspension system for all platforms in the country that are involved in suspicious transactions and conduct suspicious transactions. which will suspend transactions even during the pre-investigation phase. The move was recommended by the Financial Action Task Force. This move, however, is being considered by many countries around the world.
The FIU, like the US Securities and Exchange Commission, has been licensing virtual asset service providers in South Korea since 2021. All licenses issued by this company have a fixed term and are currently expiring this year. They were given a three-year term and that term is expiring this year. However, the companies whose terms are expiring this year are applying for renewal. But this time the FIU wants the agency to verify the legitimacy of each company and examine the anti-money laundering infrastructure, operational capabilities and consumer protection measures of the exchanges of these platforms before granting new permits. Those who fail the check will be denied registration.
Even the country's consumer protection law related to virtual assets will come into effect from next July. For that they are seriously undergoing a thorough examination by the authorities. The Virtual Asset User Protection Act was passed by the National Assembly in the middle of last year. The act consolidated several crypto-related bills as a result of its implementation. The act's passage provides a unified bill that defines digital assets and imposes penalties for using undisclosed information, market manipulation and other illegal business activities.
This organization is also conducting operations regarding whether there are unregistered exchanges in the country. Also they are announcing various laws and penalties or what may result from illegal transactions. That is, they want to remove inappropriate exchanges from their local markets and stop illegal transactions. However, if you want to know more information about it, you can read this news.