[Digital Today Reporter Jung Yoo-rim] Ahead of the enforcement of the revised’Act on Reporting and Use of Specific Financial Transaction Information’ (Special Law), which includes the reporting system for virtual asset (cryptocurrency) business operators, the financial authorities issued a business reporting manual. Some of the exchange industry responded that it was unfortunate that there was no mention of the standard for issuing a deposit/withdrawal account (real name account) that can confirm the real name, which is the key to acquiring business rights.
In accordance with the revised Special Provisions Act, which takes effect on March 25, virtual asset businesses are also obligated to prevent money laundering, and financial transactions must be made through a real-name account issued by a bank. In addition, after meeting the requirements of the law, such as obtaining an information security certification system (ISMS), a business report must be filed with the Financial Information Analysis Agency (FIU) to receive repairs and continue business.
First of all, before the enforcement of the revised law, the financial authorities appear to have released a manual containing the necessary points for reporting and a rough procedure. The financial authorities will not accept the report if the virtual asset business operator has not obtained information protection management system (ISMS) certification from the Korea Internet & Security Agency (KISA).
A virtual asset business operator must obtain a real name account from a bank, etc., to report. It also included whether business operators (including corporate city representatives and executives) qualify for violations of financial-related laws.
However, as issuance of real-name accounts is the most important in the exchange industry, there are still opinions that specific criteria related to this would be mentioned.
Over the past few years, there are four exchanges that have been issued with real-name accounts from banks, including Bithumb, Upbit, Coinone, and Corbit. In December 2017, the government introduced a real-name virtual asset transaction policy in order to prevent overheating of speculation, and provided a’real name verification deposit and withdrawal account service’ that allows deposits and withdrawals only between the bank account of a trader who has been verified as the person who is the person who is it Implemented.
In order to obtain a real-name account, the exchange operator must negotiate with a commercial bank or an Internet bank. From the standpoint of virtual asset providers, there have been consistent claims that the government wants to establish standards as each bank has different requirements.
An exchange industry official said, “From the standpoint of running an actual business, this manual doesn’t look much different from what was previously published, and it is regrettable that it goes beyond the formal procedure and specifically includes what needs to be implemented to repair the report. “I have.”
However, financial authorities also emphasized once again that the issuance of real-name accounts should be left to the autonomy between the bank and the virtual asset provider, as each bank has different capabilities to manage virtual asset providers.
FIU official said, “There may be a burden related to the issuance of real-name accounts from the perspective of business operators, but each bank has different capabilities to manage virtual asset providers, and it has been considered that the environment is different, such as accumulated know-how of suspicious transaction information. “From a business operator’s point of view, they would want to minimize the capacity to be put into the manpower or system to prevent money laundering, and from a bank’s point of view, they would want to increase it, but rather than the government drawing a line and presenting standards, it seems desirable that both sides agree. “He said.
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.