[D.FINE] FIU Director "The decision on authority of banks over real name account was already made"
“Regulations like the Act on Reporting and Using Specified Financial Transaction Information must be a boon for the cryptocurrency industry right?” This was a question raised from the audience during a discussion session at D.Fine 2020. Among the seven panelists, four said it was a boon. During the discussion, questions regarding the issue of of the authority of banks to determine the validity of a real account were answered by Jun Yo-sup, director of the Financial Intelligence Unit under the Financial Services Commission. #”Controversy regarding the bank’s decision was already applied in the original law” The enforcement ordinance was the talking point during the discussion session. “The act is expected to go into effect by next March. Before that, we are planning to host a public event with the Financial Supervisory Service regarding the act,” said Jun. Although the plans about the event have not been confirmed yet, he added it will be around the end of November. The central issue of the ordinance, which is relegating the publication of a real name account to the bank, he said the bank’s role was already in the original law, and the financial institutions already know this. “It is possible to think that banks may judge differently without specific standards, but fundamentally, businesses must prepare thoroughly to compromise well with the banks.” Bithumb Korea COO Han Sung-hee expressed concern, saying “Regulation is a necessary process, but if the guidelines are too ambiguous, the businesses and banks could be both confused.” “I know that it is difficult to lay out the specifics in the Act on Reporting and Using Specified Financial Transaction Information, but the ambiguous stance is a bit of a disappointment,” said Hwang Soon-ho, the head of the External Cooperation team at Dunamu.” “The biggest concern in the process of legislating the ordinance is the investors,” Jun said. “For the investors to avoid damage, we will continue to raise awareness of the law before the enactment.” The enactment is expected to be around the end of November. Businesses are likely to prepare well, and banks will also study the clauses carefully, but the utmost concern is the investors. Some businesses are considering closing down, and we can see that coming as well. Investors need to check if the cryptocurrency exchanges are preparing the ISMS and if they filed in the reports during the reporting period. We are also planning to continue to raise awareness to protect our investors in the meantime. # “The Act on Reporting and Using Specified Financial Transaction Information is suited to the prevention of money laundering… legislation on cryptocurrency business has not been actualized yet” Following the Act on Reporting and Using Specified Financial Transaction Information, issues about the legislation on cryptocurrency businesses also came to the fore. Jun agreed with the limitations of the recent legislation, saying “The law on cryptocurrency businesses will contain factors of customer protection, but the Act on Reporting and Using Specified Financial Transaction Information centers around money laundering prevention.” “Currently, there are no plans to create guidelines regarding name verification for virtual accounts, but we are planning to internally explain about the reporting manuals, which will be made by the end of the year. On a governmental level, the related ministries, including the Office for Government Policy Coordination, are in the middle of discussions regarding the law. When discussions are almost finished, the government will publicize its stance. That’s when the law on cryptocurrency businesses may find direction. Currently, that direction has not been set yet.”