South Korea, holds one among the top 5 crypto markets across the world with almost 9% of global trade volume in August 2021, in crypto exchanges. In South Korea cryptocurrency is considered legal to buy, sell and own crypto assets but it is not considered and not legalised as official tender by the South Korean Government. It must be registered in Financial Supervisory Service (FSS) and when the exchanges are legal it holds the part of closely-monitored regulatory system. In South Korea, the cryptocurrency exchange follows a strict regulation and involve government registrations which is monitored by FSS. Said strict rules includes the prohibition and banning of using of an anonymous account in trading and hosting trades by the financial institutes in the future of Bitcoin respectively. The government of South Korea has imposed a strict reporting obligation rule on the banks with accounts held by crypto exchanges. This was brought up by the Commission called Financial Services Commission (FSC) under Financial Supervisory Services (FSS). Later, in 2020, they amended the legislation in all south Korean exchanges. In amendment it states that every south Korean exchanges must act in accordance with the regulations of Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT). It also states that the exchanges must have the operating license provided by the Financial Intelligence Unit (FIU) under the Financial Services Commission (FSC). After these amendments the Government of South Korea passed a legislation in which it required the investors of cryptocurrency should have the same name on their accounts of virtual wallet as same as the name given on their bank accounts and insists the exchanges that information should be shared with banks for the verification of identity of the customers. Later, the government banned the private coins from South Korean Exchanges in 2021 by the FIU.

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Karthikeyan.N

B.A., B.L., (Hons) IPDP., (London)
Pgd IPR., Pgd Cyber Law., Msc., (IT)
CCI., CFA., IPCL.,
Advocate, Madras High Court

Karthikeyan, is a renowned cyber law expert, who is also the Managing Partner of Law Office of Karthikeyan, a reputed law firm based in Chennai.

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