Institutions found not in compliance faces penal measures, including shutting down of operations.
On Monday, South Korea’s financial regulator stated it has jointly carried out inspections on six local banks that offer virtual currency services, including opening of accounts, to institutions.
In a press conference, South Korea’s Financial Services Commission (FSC) and Financial Supervisory Service (FSS) stated both institutions will verify whether these banks are in compliance with anti-money laundering rules and whether they are using real names of individuals while operating the accounts, said Choi Jong-ku, FSC’s Chairman.
Choi went on to add, South Korea wants to mitigate the risks that are normally associated with trading in cryptocurrency. The institutions that are not complying with existing laws will face penal consequences, including closure and shut down.