FSC "Need absolute cooperation"
The Financial Services Commission called for the swift passage of the Act on Report on and the Use of Specific Financial Transaction Information. Roh Tae-seob, a policy advisor from the Financial Services Commission, said that “The bill might need to start from scratch if the rule fails to pass this year.” “Ahead of the assessment by Financial Action Task Force (FATF) in June, we need cooperation from the National Assembly,” he added. What is the act about? Proposed by Rep. Kim Byung-wook, the act is a regulation for entities or people involved in cryptocurrency transactions and reflects the guidelines provided by the FATF. The institution demanded that the operators of crypto exchanges collect the information of those involved in cryptocurrency transactions, suggesting that security systems also be installed. The act could come into effect one year after the announcement of adoption and existing businesses are required to register within six months after implementation. Rule at odds with local market conditions Roh Tae-seob pointed out that the rule contains some articles that are irrelevant to the domestic cryptocurrency market. For instance, the act stipulates that if legal issues take place outside of Korea, the case will still be subject to domestic laws. But the rule is not appropriate given that cryptocurrency transactions often occur between countries. “Regulations vary among countries, so it remains to be seen how the rule will be actually implemented,” he said. There also exists a gap between the expiration date of cryptocurrency businesses and a certification related to information security. The registration will be effective for five years while the validity of the certification lasts three years. Act awaiting fast approval The Act on Report on and the Use of Specific Financial Transaction Information found its way into a subcommittee at the National Assembly on Nov. 21. But the passage also required corrections to some articles, but that was also the last day of the 100 day regular session at the National assembly. “We need to see if we can meet a planned schedule because we are supposed to work on the enforcement decree for one year,” Roh said. “If the law passes, we will move forward as fast as we can.”