Korea Cracks Down on Crypto Exchanges with New Shareholder Notification Rule
The South Korean government has tightened regulations on cryptocurrency exchanges and virtual asset service providers. From now on, they must notify regulators at least 30 days in advance of any changes to their major shareholders.
This new rule is part of a revised filing manual for virtual asset service providers, which comes into effect on the 20th of this month. The Korea Financial Intelligence Unit (FIU) and the Financial Supervisory Service (FSS) held a briefing to explain the changes.
The review process now covers not only major shareholders but also related parties, including corporations' largest shareholders and de facto controllers. Authorities will examine financial condition and social credit standing, as well as any violations of economic crime laws.