Authorities to oblige South Korean crypto exchanges to disclose user data

The Financial Services Authority (FSC) of South Korea intends to introduce new measures for companies operating with virtual digital assets. Relevant amendments to the national legislation are currently in preparation and provide for the disclosure of the identity of users. Reporting will make it possible to track data on financial transactions and the use of new digital instruments in illegal actions (for example, in money laundering).

In particular, additional measures will require companies to open accounts only in the true name of the client and obtain a data security certificate from the Korean Information Security Agency.

It is worth noting that the attention of the regulator will concern not only cryptocurrencies, but also digital tokens that cannot be exchanged for fiat currencies, as well as electronic money, electronically registered shares, electric banknotes, goods and much more. The exceptions will be prepaid and mobile gift cards and e-bonds.