South Korea to Strengthen Measures Against Money Laundering in Virtual Assets

According to PANews, South Korea's Financial Services Commission (FSC) Chairman, Kim Byoung-hwan, has announced the government's intention to implement robust measures to prevent virtual assets from becoming a loophole in the anti-money laundering system. This announcement was made during the 18th Anti-Money Laundering Day ceremony. Kim Byoung-hwan highlighted the frequent misuse of virtual assets in illegal activities, underscoring the need for stringent regulations. He emphasized that the government is committed to ensuring that virtual assets do not facilitate unlawful financial transfers or tax evasion. To address these concerns, future amendments to the Foreign Exchange Transactions Act will require virtual asset service providers involved in cross-border transactions to register in advance and report transaction details. These measures aim to enhance transparency and accountability in the virtual asset sector, aligning with global efforts to combat financial crimes. The FSC's initiative reflects a proactive approach to safeguarding the financial system from the risks associated with digital currencies.