South Korea’s financial watchdog, The Financial Service Commission (FSC), would monitor crypto whales with assets well over 100 million won ($70,000) to avoid money washing efforts using digital assets.
The FSC noted that the higher the proportion of virtual assets and stablecoins, the greater the cash washing risk. Thus, special focus ought to be put on monitoring crypto whales with significant digital asset and stablecoin holdings underneath the new anti-money washing guidelines, reported local media.
The report also came focus on using stablecoins in money washing and noted that stablecoins, especially individuals which are generally utilized by the general public, are more inclined to be utilized for a method of crime. The report reads:
“In the situation of the individually listed virtual asset, it’s possible that it didn’t satisfy the listing criteria of other virtual asset operators, also it can be evaluated that the chance of money washing of virtual asset operators having a high proportion from the virtual asset is high.”
Aside from monitoring crypto whales as well as their activities, the report also recommended to keep a cheque on retail customers making high-value deposits. Individuals customers making high crypto transactions ought to be monitored for just about any significant alternation in holdings every 3 months.
“Customers with large virtual asset holdings are in greater chance of money washing,”
Columbia is renowned for its strict implementation of crypto-related policies, mainly in the wake from the Terra-LUNA collapse. The financial regulators have bending lower on their own efforts to make sure investor protection and produce crypto legislation by early 2024.
Related: Koreans to get access to blockchain-powered digital IDs by 2024
In August this season, the chair of FSC stated the regulator intends to expedite its overview of 13 bills pending within the country’s National Set up associated with digital assets. The purpose of review ended up being to make institutional supplements which will have a balanced method of blockchain development, investor protection and market stability.
