The Financial Services Commission said that domestic banks must now monitor all accounts held by a cryptocurrency exchange
In order to address increasing money laundering cases, South Korea's financial regulator has decided to tighten the monitoring of bank accounts related to cryptocurrency exchanges in the country.
Typically, an exchange has to keep their exchange's traders fund in a depositing account, while another operating account holds the investors' depositing account.
So far, banks had to monitor only investors' depositing accounts at crypto exchanges. However, the absence of monitoring on several accounts may result in banks laundering money or evading taxes by using their operating accounts to buy cryptocurrencies from foreign exchanges.
In order to avoid this, an amendment which will require banks to monitor the different accounts of cryptocurrency exchanges has been implemented by the government. If any suspicious activity or transaction takes place by the crypto exchanges, then the banks must share that information with the FSC.
