South Korea Introduces Stricter KYC Requirements for Crypto exchanges

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South Korea has announced enhanced know-your-customer (KYC) requirements for crypto exchanges and banks to tighten security for new institutional clients. This move comes as the country gradually lifts its ban on institutional crypto investments.

Starting in June, certain registered crypto exchanges and non-profit organizations will be permitted to sell crypto assets within South Korea. Non-profits can sell donated crypto, while exchanges may liquidate crypto received as user fees.

In a press release on Tuesday, the Financial Services Commission (FSC) stated that exchanges and partner banks must thoroughly verify the source of funds and the purpose of transactions for new institutional clients.

These stricter KYC measures aim to protect the South Korean crypto and financial markets from money laundering risks. The FSC emphasized that institutions and their CEOs should be monitored for potential money laundering activities.