The South Korean regulator will ban trade in anonymous cryptov currencies.
On 3 November, the South Korean Financial Services Commission (FSC) announced a ban on anonymous digital currencies that „carry a high risk of money laundering“. This was announced by Finance Magnates.
The regulator announced the adoption of amendments to the law on special payments, which regulates the circulation of cryptographic currency in South Korea. The new rules will come into force in March next year; all local crypt currency exchanges will no longer be able to offer coin trading services that ensure a high level of anonymity of users (e.g. Monero and Zcash). The Commission has called such crypt currencies „dark coins“ and emphasised the difficulty of tracking transactions using these digital currencies.
In addition, FSC will require all local crypt currency exchanges to implement stricter Know Your Client (KYC) procedures and anti-money laundering (AML) programmes. The exchanges will also report to the regulator on their operational activities.
Although FSC has only now decided to restrict the circulation of such cryptov currencies, negative attitudes towards them have been noted in South Korea before.
Last year, several South Korean cryptographic exchanges delisted anonymous coins. OKEx South Korea announced the delisting of Zcash, Monero, DASH, Horizen (ZEN) and Super Bitcoin (SBTC) in September 2019, citing recommendations from the Financial Action Task Force (FATF).