South Korea to Fine Trades That Fail to Deal with Illegal Crypto Activity

March 11, 2021

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The Financial Services Commission of South Korea stated on Wednesday that it will issue financial penalties for trades that fail to follow rules and regulations made to handle illegal crypto activities. The regulator stated in the declaration that it will fine trades that fail to follow three regulations covering info and data retention, internal control, and identity verification of virtual asset traders.


Trade administrators are should hold data and information associated with any dubious exchanges, including those made utilizing a lot of fiat money, as first detailed by Korea JoongAng Daily. Fines for breaches range from 30 million to 100 million won, generally $26,000 to $88,000. Punishments might be decreased by up to half under certain conditions like erroneous breaches, the FSC stated. 


Additionally, the Seoul-based bank built the blockchain-based stage in anticipation of a part as an intermediary should a digital won be dispatched. The Bank of Korea has directed research into the issuance of a CBDC, results for which were distributed in February. The national bank presently can’t seem to choose whether the digital won would be disseminated straightforwardly to customers or by means of an intermediary like Shinhan Bank. 


Shinhan Bank has developed a pilot stage for upcoming central bank digital currency in South Korea with help from LG CNS. The Seoul-settled bank assembled the blockchain-based platform in preparation for the issuance of a central bank digital currency (CBDC) by the BOK, the Yonhap News Agency announced Monday.


As per a Shinhan Bank official, should the national bank choose to push ahead with the issuance, it would require an intermediary organization to disseminate and support the utilization of the digital won. The stage divides the CBDC’s issuance into general funds for people and disaster support funds gave to support organizations and local government.


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