Important Changes Regarding the Sale of Cryptocurrencies Held by Exchanges in South Korea

South Korea’s Financial Services Commission (FSC) announced that non-governmental organizations (NGOs) and virtual asset (cryptocurrency) exchanges will be able to sell cryptocurrencies within the legal framework starting in June. According to Joseilbo, this opportunity will be offered on the condition that institutions establish internal audit mechanisms and strengthen anti-money laundering investigations. The 4th Virtual Asset Committee, chaired by FSC Vice Chair Kim So-young, was held at the Seoul Government Complex on the morning of May 1. The meeting finalized the draft virtual asset sales guidelines for NGOs and exchanges as part of the “Institutional Participation Roadmap” announced at the previous meeting. According to the new guidelines, virtual asset sales will only start with external audit institutions whose operating period exceeds 5 years. However, relevant institutions will be required to establish a “Donation Review Committee” to evaluate the appropriateness of donations and cash-out plans in advance. At the same time, the purpose of the transactions and the source of funds must also be verified. The guidelines for NGOs aimed to create a solid donation culture and prevent money laundering, especially for virtual assets received through donations and sponsorships. The assets subject to donation were limited to those traded on at least three Korean Won exchanges. It was also made mandatory for these assets to be converted into cash immediately upon receipt. In order to prevent money laundering, verification of the purpose and source of transactions has been strengthened, while a cross-customer verification mechanism has been established between banks, exchanges and institutions by only allowing donations and transfers made through local won exchanges. The guidelines for virtual asset exchanges focused on preventing conflicts of interest with users and minimizing market influence. Only virtual asset operators registered under the “certain financial transaction information law” will be able to make sales, and these sales will only be made to cover operating expenses. The assets that can be sold will be limited to those in the top 20 in terms of market value on the five major Korean won exchanges. In addition, the daily sales limit will not exceed 10% of the total sales plan, and exchanges will be prohibited from selling on their own platforms. *This is not investment advice. Source: https://en.bitcoinsistemi.com/important-changes-regarding-the-sale-of-cryptocurrencies-held-by-exchanges-in-south-korea/