South Korea’s Financial Services Commission (FSC) has introduced new measures to strengthen oversight of cryptocurrency exchanges operating within the country. This regulatory move is aimed at enhancing transparency and security in the rapidly growing virtual asset market.
The FSC’s initiative includes a requirement for all virtual asset service providers (VASPs) to register with the government and obtain Information Security Management System (ISMS) certifications. Exchanges must also establish real-name trading accounts in collaboration with South Korean banks to comply with anti-money laundering (AML) regulations.
In a recent meeting with 20 crypto exchanges, the FSC’s Financial Intelligence Unit (FIU) discussed the challenges smaller exchanges face in meeting these requirements. While the major exchanges like Bithumb, Upbit, Korbit, and Coinone have already secured real-name trading accounts, many smaller exchanges are struggling due to the high costs associated with obtaining banking partnerships.
