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‘The Specific Financial Transaction Report and Use Law’ must be declared clearly

Haeboong Lee, the Deputy Director of the Financial Supervisor Service(FSS), announced that “the regulation on the Specific Financial Transaction Report and Use Law must be declared clearly.” On July 10, Deputy Director Lee was the keynoter to deliver the topic on enforcement ordinance of the revised Specific Financial Transaction Report and Use Law and the impact of the blockchain technology on the ecosystem at “the 7th commentary on the amendment to the Specific Financial Transaction Report and Use Law National Assembly Seminar. ’ He said, “the enforcement decree of the law must clarify the regulatory boundaries between existing financial-related and virtual asset-related activities. In order to do so, information asymmetry must be resolved, such as the business operator’s responsibilities and the consumer’s basic rights and responsibilities.” He then cited the case of the U.S. Securities and Exchange Commission (SEC), which created investment contract securities, or that of Bank of England, which established regulatory boundary guidance on crypto assets. He added, “The scope of the regulatory sandbox pilot operation should be expanded”, mentioning the securitized token trading platform proposed by Hong Kong Securities and Futures Commission. Hong Kong is currently reviewing its policy of granting regulatory sandbox conditional accreditation to operators that accept those conditions. Then he stated, “We need to create the conditions necessary for enacting a business law suitable for the era of digital transformation. We need to develop the systems and rules necessary for growth, including digital conversion assets and digital assets.” “In addition to the anti-money laundering regulations, the rules of business conduct investment protection should be combined, and in the process of legal enactment, effective publicization procedures must be conducted and legitimacy must be secured.” Digital conversion assets means literally digitizing already existing securities and bills. He said, “Governments has yet to differentiate between the two assets.” He emphasized that reinforcement is necessary saying, “In implementation of reporting obligations of the Specific Financial Transaction Report and Use Law, virtual asset providers recommended by the financial institutions or casino operators FATF (Money Laundering Agency) have been added, but some designated non-financial businesses or professionals have not been reflected.” He concluded,“the effectiveness of the anti-money laundering system and the terrorist financing assistance system should be improved. And we still need a clear guides to the parts of the law that need to be interpreted. We need to provide more reference types, such as reporting financial transactions.” https://www.blockmedia.co.kr/archives/147163 ※This article is published with the permission of Blockmedia.

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