The South Korean financial authority is planning to employ many new crypto officers and create a new crypto department. However, the organization’s likely new leader has stated that there will be no stay of execution for dozens of crypto exchanges that may be targeted.
As a result of its conduct, it was compelled to close.
According to News1 and Newsis, the Financial Intelligence Unit (FIU), a division of the Financial Services Commission (FSC), will create a “virtual asset inspection section” to oversee “virtual asset service providers (VASPs),” such as “cryptocurrency exchanges.” The agency will also be tasked with assisting in the development of a regulatory framework for crypto-related anti-money laundering issues.
The FIU will add 14 more staff members and alter its structure to suit the new crypto division, which will start with nine members.
The crypto sector should pay attention to the new department since it will be the portion of the FIU that examines crypto exchange operating licence applications, grants operating permits, and conducts monitoring and on-site inspections.
The FIU also promised to “improve the existing system” to give exchange users “customer protection.”
Meanwhile, the government’s nominee for the soon-to-be-vacant position of FSC chairwoman, Koh Seung-beom, has issued a stern warning to the country’s stumbling crypto sector.
Exchanges and political opponents have asked with the FSC to extend their preparation time for new anti-money laundering and banking regulations by six months. These protocols will take effect in less than a month, on September 24, but only one exchange has filed the required documentation so far.
As things stand, South Korea’s 60+ crypto exchanges will have a de facto monopoly by the end of next month. Even so, the exchange in question — market leader Upbit – is currently awaiting the FIU’s decision on its application. It may take up to three months for the process to complete.
Ko said there will be “no extension” to the deadline, according to Seoul Kyungjae. Ko, who looks to be bracing himself for the brunt of a potential “shutdown crisis,” went on to say:
“We will release important information as soon as possible and make every effort to limit the damage to [crypto market] participants.”