South Korea is already leading the space with some of the strictest policies for crypto platforms, with the new proposal of blocking virtual currency transactions from anonymous sources, it hopes to combat illegal activities and money laundering.
By bringing crypto exchanges and businesses under the law, South Korea has risen to become the world’s leading crypto regulatory nation.
The country was one of the first to implement the most recent anti-money laundering (AML) legislation, which resulted in the shutdown of hundreds of small and medium-sized cryptocurrency exchanges.
South Korea is planning to outlaw all virtual currency transactions coming from anonymous sources in order to combat the use of crypto for illegal activities and money laundering. A new “Travel Solutions Rule” has been proposed by the country’s regulatory agency.
Korean Gov: I’m going to prohibit withdrawals from Korean exchanges to non-KYC’d wallets like Metamask by March 2022.
Degens: So no more DeFi, NFT, DAO for Koreans? 😞
Korean Gov: No exceptions. Every blockchain wallet must be KYC’d.
Nice job Korea!https://t.co/i4Hicr9pEO
— Ki Young Ju 주기영 (@ki_young_ju) December 10, 2021
From March 2022, the new Travel Solution Rule will prevent withdrawals from Korean exchanges to non-KYC’d wallets like Metamask. There will be no exceptions after the deadline, according to the regulatory office.
“In the future, when exchanges transmit virtual assets such as Bitcoin or Ethereum, ‘who sent and who received’ records are kept. Transfers will only be possible between ‘licensed exchanges’.”
According to local reports, 14 South Korean exchanges are yet to apply for a license under the new restrictions. The four biggest crypto platforms, Upbit, Korbit, Coinone, and Bithumb, are among the fourteen exchanges. The new measures, according to the regulatory agency, will prevent tax avoidance.