South Korea Moves to Fine Crypto Exchanges That Fail to Tackle Illicit Activity

According to South Korea’s Financial Services Commission (FSC) announcement, Wednesday, it will issue financial penalties to exchanges that fail to follow their three regulations designed to curb illicit cryptocurrency activity.  

The commission said; it will fine exchanges that fail to tackle illicit activities. They maintained exchanges that did not follow their three regulations rules which include; covering internal controls, information and data retention, and identity verification of virtual asset traders are culpable and will be fined. 

“ Exchange operators must retain information and data connected to any suspicious transactions, including those made using large amounts of fiat currency,” Korea JoongAng Daily reported. 

Exchanges that breach the rules are fined between 30 million to 100 million (roughly $26,000–$88,000) accordingly. However, FSC penalties may be reduced by up to 50% under some circumstances such as erroneous breaches,

Also, South Korea is planning to bring in a cryptocurrency tax of 20% if gains exceed 2.5 million won (US$2,200).