- Authorities said they will strengthen screening of major shareholders of virtual-asset service providers from Aug. 20, including reviews of criminal records and financial condition.
- Under the revised Act on Reporting and Use of Specific Financial Transaction Information, checks on records of legal violations and financial condition and social credibility will be expanded to major shareholders.
- Reporting of changes involving major shareholders will shift from post-change filing to advance reporting 30 days before the change.
Forecast Trend Report by Period
South Korea will tighten regulatory screening of major shareholders in virtual-asset service providers starting Aug. 20.
The Financial Intelligence Unit, or FIU, under the Financial Services Commission said Aug. 13 it will finalize and implement a revised reporting manual on Aug. 20, when amendments to the Act on Reporting and Use of Specific Financial Transaction Information take effect. The FIU and the Financial Supervisory Service revised the manual to reflect the amended law, its enforcement decree and supervisory rules introduced in January.
The authorities also held a briefing that day to explain the changes to the industry. Attendees included the Digital Asset eXchange Alliance, or DAXA, and 28 virtual-asset service providers registered under the law.
The amended law expands criminal-record screening in the reporting process for virtual-asset service providers to major shareholders, from the current scope of chief executives and executives. It also requires authorities at the review stage to determine whether applicants meet standards on financial condition, social credibility, and the organizational, staffing, equipment and internal-control systems needed to carry out anti-money-laundering duties.
