Banks in South Korea instructed to treat crypto exchanges as high-risk clients

South Korean banks have been instructed to treat crypto exchanges as high-risk clients by the country’s financial regulator.

Banks in South Korea instructed to treat crypto exchanges as high-risk clients

According to a report by The Korean Times, The Financial Services Commission (FSC) said crypto exchanges must be subject to strengthened transaction monitoring and ID verification.

Banks will be required to deny servicing clients that do not comply with ID verification requirements or fail to report suspicious activity to the FSC's anti-money laundering unit, the Korea Financial Intelligence Unit.

Besides, exchanges will have to terminate transactions performed by accounts that are not real-named based or have not been verified using the necessary identity checks.

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There are 60 exchanges in the country, but only four out of them are using real-name accounts that meet this standard, the report said.

The statement from the FSC comes as exchanges have time until Sept. 24 to register as virtual-asset service providers (VASPs) for the regulator to then assess the legality of their operations.