Industry opinions reflect that the unconditional prohibition of orderbook (transaction ledger) sharing is too harsh, and the previously prohibited transaction book sharing between virtual asset exchanges will be restrictedly allowed.
On February 17, the Financial Commission stated that it would make a legislative advance notice of the amendments to the “Regulations on Reporting and Supervision of Specific Financial Transaction Information” containing the above content.
The legislative notice period is from the 18th of this month to the 2nd of the next month. On the 25th of next month when the “Specific Financial Information Law” (Special Financial Information Law) that imposes anti-money laundering (AML) obligations on virtual asset operators is implemented, the legislation advances the specific provisions of entrusted supervision.
The transaction ledger can be shared when certain conditions are met
In the previously published “Special Gold Law” enforcement order, “through cooperation with other operators, customers and other operators’ behavior of asset transactions”, that is, sharing transaction books. According to related content, virtual asset exchanges such as Aprobit have suspended trading account sharing with overseas exchanges. In addition, Bynance KR is also worried that the transaction volume will drop when it stops sharing the transaction ledger and announced the closure.
However, industry opinions continue to emerge as to whether such restrictions are too strict. In December last year, the Financial Commission also pointed out in the special gold law enforcement order hearing that if the sharing of transaction books is prohibited, national wealth will flow overseas. Domestic exchanges can provide abundant liquidity by sharing trading books, and if this is prevented, investors will flee to overseas exchanges. The supervisory authority reflected the above opinions and decided to restrictively allow the sharing of transaction books. In order to share, certain conditions must be met.
Other virtual asset managers (Oderbook shared target exchanges) are those who perform anti-money laundering obligations through licensing, etc., domestic or overseas. ▲Virtual asset managers can confirm customer information of other virtual asset managers with which they transact.
Prohibit darkcoin if there is no Korean Won receipts and payments, bank accounts are not necessary
The content published on the same day also included a clear deadline for the suspicious transaction report (STR). Previously, it was only stated as “no delay report”, but the deadline was “report within 3 working days”.
It also stipulates the price accounting method of virtual assets. When the transaction or exchange transaction is concluded, the value of the virtual asset marked by the virtual asset operator is used to calculate the Korean won conversion amount. When customers request to transmit virtual assets or receive virtual assets, the above principles apply.
It is forbidden to use “darkcoin” that cannot confirm transaction details
If there is no Korean Won for deposits and withdrawals, the content of the current enforcement order, such as the real-name confirmation of deposit and withdrawal accounts, remains unchanged.
According to the Financial Commission, when there is no exchange between virtual assets and money, that is, when Korean won is not provided for deposit and withdrawal, it is not necessary to obtain a real-name confirmation deposit and withdrawal account from the bank.
According to the “Special Financial Law Amendment”, virtual asset operators such as exchanges must have ISMS (information protection management system) certification, AML system and other certain conditions, and can only carry out business activities after applying to the Financial Supervision and Analysis Institute (FIU). At this time, exchanges that provide Korean won deposit and withdrawal services also need to obtain real-name accounts from banks. Currently, there are only 4 exchanges with real-name accounts, Bithumb, Upbit, Co-inone, and Co-bit.
A person from the Financial Commission stated: “According to the revised “Special Financial Law”, virtual asset operators should begin to perform anti-money laundering obligations such as declaration, customer confirmation, STR, etc. from the 25th of next month,” but it is actually difficult to perform before accepting applications Therefore, it plans to perform anti-money laundering obligations after accepting the application, and at the same time, it plans to inspect and supervise whether the obligation is violated after the application is accepted.”
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.