South Korea is about to tighten control over the local cryptocurrency trading platforms via expanding the power of the Financial Service Commission.
According to the reports, FSC that used to design guidelines for banks on cooperation with cryptocurrency exchanges will become a direct watchdog for these exchanges. It was also noted that Seoul plans to launch an exchange certification procedure in the country, which will correspond to the FATF recommendations.
For reference, the Financial Action Task Force released the final edition of the crypto sector guidelines this June. The document states that cryptocurrency trading platform and other service providers in the segment must comply with AML and CFT policy as traditional financial companies do.
The Commission is confident that this may help to make the industry more transparent.
As FSC representative commented, if Korea's parliament approves the amendments to the law in line with the FATF guideline, it will become possible to fight against money laundering via cryptocurrency.
Besides, direct supervision is believed to make control over the industry more effective.