According to a [report](https://koreatimes.co.kr/www/nation/2024/02/816_368640.html?utm_source=fl) by The Korea Times, South Korea’s Financial Intelligence Unit (KoFIU) announced it will expel cryptocurrency platforms deemed "unfit" starting this year. In addition, new businesses planning to enter the crypto market will also have to undergo stricter screenings.

The government agency said it is considering a preemptive trading suspension system, similar to those implemented in countries like Germany and Finland. Under this rule, transactions can be frozen even in the pre-investigation phase to prevent a crime from being committed. 

Since 2021, the KoFIU has been tasked with granting licenses to virtual asset service providers in South Korea. These licenses are set to expire in 2024, so companies seeking renewal will have to be assessed on their policies like safeguards against money laundering and consumer protection measures before being issued new licenses. 

The stricter regulation of cryptocurrency exchanges is to prepare for South Korea’s first protection law on virtual assets, which is scheduled to take effect in July.

According to KoFIU Commissioner Rhee Yun-su, “In preparation for the enactment of the virtual asset consumer protection act from the latter half this year and the large-scale renewal registrations, KoFIU will agilely push forward with the necessary institutional improvements to ensure the seamless operation of the currency industry.”

KoFIU said these plans were made after consulting with members of the cryptocurrency industry and other experts. 

The South Korean Financial Intelligence Unit announced it on Monday. 


Wed Feb 14 2024

The Korea Times: South Korea to Remove ‘Unfit’ Crypto Exchanges

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Wed Feb 14 2024 The Korea Times: South Korea to Remove ‘Unfit’ Crypto Exchanges

South Korea’s KT Corporation Shuts Down NFT Platform

Local Media Reports Planned Bithumb Listing on the Korean Stock Market

Local Media Reports Planned Bithumb Listing on the Korean Stock Market

Local Media Reports Planned Bithumb Listing on the Korean Stock Market

Wed Feb 14 2024

The Korea Times: South Korea to Remove ‘Unfit’ Crypto Exchanges