Bithumb announced that it has released an identity authentication system called Value Network Doman Name System (VNDS) that would help crypto exchanges in complying with the international regulations. According to the exchange, the identification system offers users to issue non-public proofs on the blockchain, and a way to authenticate such proofs against the issuer’s domain name linked to their addresses. Earlier, several exchanges in South Korea delisted privacy coins like Monero and Dash.
South Korean lawmakers amend regulations to meet FATF guidelines.
On November 21st this year, the South Korean parliament approved legal amendments to meet the Financial Action Task Force (FATF) guidelines for crypto exchanges in the country. The South Korean lawmakers made amendments to the Act on Reporting and Use of Specific Financial Information. The new regulations bring the cryptocurrency sector under the purview of the local mainstream economy.
Noncompliance could result in 5 years in jail and a penalty of 50 million Won.
The noncompliance from the regulations could result in a 5-year jail term and a fine of 50 million Won ($42,000) according to the approved revisions. South Korea accounts for almost 20% of the world’s cryptocurrency transactions. But continuing regulatory scrutiny might cause crypto exchanges to take serious measures that could result in less privacy for crypto users. Bithumb and only few other exchanges have the permission to have commercial bank accounts and continue their operations.