One of the leading crypto exchanges in South Korea, Bithumb, has partnered with the blockchain analysis firm Chainalysis and will use its technology to investigate suspicious activities. Earlier, South Korea’s National Assembly passed a bill making crypto regulations more strict.
South Korea amends the Special Financial Transactions Information Act.
On 5th March, South Korea’s National Assembly voted in favor of amending the Special Financial Transactions Information Act. All crypto exchanges in the country are required to comply with the new regulations within a year. Jason Bonds, Chief Revenue Officer, Chainalysis, said that they are committed to helping customers investigate all kinds of illegal activities, including hacks, scams, and establish long-term regulatory compliance.
Governments enforce FATF guidelines all over the world.
South Korea recently passed a bill to establish a framework for the crypto industry. New crypto regulations are based on the guidelines proposed by the Financial Action Task Force last year. South Korea is not the only country that has been working to enforce the FATF guidelines, Singapore, Abu Dhabi, Switzerland, and many others have started implementing those guidelines.
According to the new regulations, crypto exchanges in South Korea must now report their operations to the country’s Financial Intelligence Unit, and non-compliance with the law will result in up to five years in prison.