The South Korean crypto exchanges will now be directly under the control of the country’s regulatory body, Financial Services Commission. Currently, the Financial Intelligence Unit(FUI) indirectly controls exchanges through administrative guidance to banks.

According to FUI, it will introduce a “cryptocurrency exchange licensing system“. This will improve the transparency of digital asset transactions. The recommendation came from FATF. Lee Tae-hoon, head of administration and planning at the FIU, spoke at a public hearing on the enactment of a law to improve transparency in virtual asset trading. According to him, if an amendment to the Act on Reporting and Use of Certain Financial Transaction Information, passes the National Assembly, it will be possible to prevent money laundering through cryptocurrencies. Additionally, the approval of the amendment would make regulations more effective. As per the source, they can do this by shifting the current indirect regulation through commercial banks to direct regulation.

However, the local South Korean crypto exchanges want an explanation of the existing rules of the crypto regulatory framework. It also includes clarity on the issuance of real-name accounts to crypto exchanges by the banks.

South Korea is one of the biggest markets for crypto trading. Japan and America are other top countries for crypto trading. Also, the country has recently announced its plan to create a local cryptocurrency for the citizens of Seoul. Moreover, it will enroll other blockchain-related services by the end of the year in the state.