FIU, assesses virtual asset exchanges' readiness for 'expanded corporate participation'

FIU, assesses virtual asset exchanges' readiness for 'expanded corporate participation'

Investigation in preparation for 'Phase 2 roadmap'... data on top 20 virtual assets by market cap also collected

The Financial Intelligence Unit (FIU) has begun assessing virtual asset exchanges' readiness for anti-money laundering (AML) in anticipation of expanded corporate participation in the virtual asset market.

According to industry sources on the 7th, the FIU requested data on each exchange's preparations for the implementation of Phase 2 of the 'Roadmap for Corporate Participation in the Virtual Asset Market' from the Digital Asset eXchange Alliance (DAXA) on the 4th.

It is reported that the FIU requested data on overall AML-related preparations, including whether each exchange has improved its Know Your Customer (KYC) procedures and Suspicious Transaction Report (STR) system.

DAXA plans to collect relevant preparation data from the five major virtual asset exchanges (Upbit, Bithumb, Coinone, Korbit, Gopax) by 2 PM on the same day and submit it to the FIU.

It is also known that the FIU requested DAXA last month to collect transaction-related data for the top 20 virtual assets by market capitalization that each exchange is permitted to sell.

In Korea, following the 'Roadmap for Corporate Participation in the Virtual Asset Market' jointly announced by the Financial Services Commission and related agencies in February last year, non-profit corporations meeting certain conditions and virtual asset exchanges have been allowed to sell virtual assets for monetization purposes since June of that year.

According to this roadmap, in Phase 2, virtual asset transactions will be provisionally permitted for approximately 3,500 listed corporations and corporations registered as professional investors under the Capital Markets Act, excluding financial institutions. The implementation schedule for Phase 2 is undetermined.

Before the implementation of Phase 2 of the roadmap, the Financial Services Commission plans to establish trading guidelines that include strengthening banks' verification of transaction purposes and sources of funds for anti-money laundering, and expanding disclosures to investors.