The Financial Services Commission (FSC) of South Korea is mandating that the results of supervision and inspections be disclosed publicly. The rules revision applies to crypto and virtual asset inspections as well.
The country’s authorities have increasingly scrutinized the crypto market since the Terra implosion last year.
South Korea Crypto Inspections a Key Talking Point
The reports speak of an announcement by the Financial Services Commission to change the “inspection and sanctions regulations on reporting specific financial transaction information.” The related processes include not just virtual asset operators but financial companies, post offices, and casino operators as well.
The revision requires disclosing major details on the homepage. Completing this action is necessary within ten days of the final notification of inspection results. It also applies to the action taken by the FIU or others.
The agency also stated that it would further expand the scope of disclosure with respect to inspections and sanctions against South Korea crypto operators. Lee Yoon-soo, director of the FIU, said,
“Considering the types of major crimes related to virtual assets, we will present the main inspection items in advance and raise awareness in the market by disclosing cases of business operators’ violations and unfair practices from time to time.”
FIU to Support Crypto Service Providers
At the same time, the FIU recently held a meeting with five local virtual asset services providers, supporting them in their endeavors. The agency will work with them to bolster compliance capabilities.
The goal is to reduce crypto-related crimes by ensuring that all stakeholders are on the same page and can plug loopholes where possible. Yoon-soo said that it was important to protect investors and establish market transaction orders.
South Korea’s authorities’ actions are not limited to inspections. The FSC recently mandated that its employees report their crypto asset holdings. Details required include the type of crypto assets held, date of acquisition, quantity, and amount.
The FSC has also imposed fines on foreign financial firms for illegal short selling, a sign of the tougher stance it is taking. Those fined include Mizuho Securities Asia and J.P. Morgan Securities. South Korea has banned naked short-selling.
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