On March v, Republic of korea'southward National Assembly passed a revised neb on the reporting and utilize of special financial transaction information, focusing on the introduction of a permit system for cryptocurrency exchanges.

Accordingly, virtual asset operators such as cryptocurrency exchanges would have to written report their operations to the Financial Intelligence Unit (FIU) under the Financial Services Commission after obtaining "real name-confirmed accounts" from commercial banks. Failure to report operations could event in upwards to five years in prison house or 50 one thousand thousand won ($42,000) in fines.

The bill, to be implemented in March side by side year, calls for existing crypto exchanges to meet requirements for a real-name account and ISMS authentication, and to study their operations within six months afterwards the constabulary's implementation.

The Financial Supervisory Service and the FIU will also strengthen the Anti-Money Laundering (AML) system for virtual assets such as cryptocurrency in accord with the recommendations by the Financial Action Task Forcefulness ahead of the law's implementation.

The revised beak will speed up the preparation of sub-law regulations, including the scope of virtual asset businesses subject to AML requirements, and weather condition and procedures for issuing real-name accounts.

Merely the stiff will survive?

Thus far, but four large cryptocurrency exchanges — Upbit, Coinwon, Bithumb and Korbit — have used existent-proper name accounts. Well-nigh others take reportedly relied on honeycomb accounts, through which they received investor money with their own corporate accounts to support customer transactions.

As the conditions and procedures for banks to issue real-name accounts to crypto exchange become stricter, small exchanges utilizing honeycomb accounts will be forced either to comply or go out the industry.