On March 10, major Southward Korean cryptocurrency substitution Bithumb appear information technology has partnered with crypto forensics firm Chainanylsis following the passing of new Korean crypto regulations.

Bithumb volition utilise Chainalysis's "Reactor" investigations tool to examine suspicious activity on its platform in a bid to comply with Korea's recently amended Special Financial Transactions Data Act.

South Korean crypto exchanges must comply with new regulations by 2022

Certain provisions in the act will take 12 months to come up into effect, with the new appliance expected to be fully implemented afterward a further six months. Every bit such, all Due south Korean crypto exchanges must operate with full compliance past September 2022.

Bithumb's head of compliance, Sungmi Lee, predicts lawmakers to further strengthen the new legislative apparatus in the near futurity, stating, "We anticipate farther updates following final week's vote making it even more of import for us to have back up available in our local language."

Non-compliant exchanges face upward to five years in prison

On March 5, South korea'southward National Assembly passed the revised neb, introducing a allow system for the nation's virtual asset service providers (VASPs).

Korean exchanges must now report their operations to the country's Financial Intelligence Unit, and are required to collect "existent proper name-confirmed accounts" from banks. Reporting failures can exist penalized with up to v years in prison or $42,000 worth of fines.

Exchanges must also accept their systems certified by the Korean Internet Security Bureau (KISA). Due to the time and expense involved in attaining KISA certification, simply 4 VASPs accept completed the procedure so far — Bithumb, Upbit, Coinwon and Korbit.

Chainalysis' primary revenue officer, Jason Bonds, stated, "As cryptocurrency use in Southward Korea continues to grow, new regulations such as this will make blockchain analysis solutions like Chainalysis vital for compliance."

FATF directives take effect worldwide

Republic of korea is ane of many nations to recently improve their domestic cryptocurrency regulations to meet the reporting and compliance standards recently laid out by the G7's Financial Action Chore Force (FATF).

In the by month the United Kingdom, Ukraine, Hong Kong, Dubai, Japan, Republic of korea, Singapore, and Switzerland have all updated their crypto guidelines in accordance with FATF's directives.