Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Financial authorities in Japan and South Korea are progressively tightening oversight of the relationship between the cryptocurrency industry and the conventional financial system. The official rationale is to enhance user protection.
The Financial Services Agency (FSA), which is Japan’s main financial regulator, has mandated local banks to adopt measures aimed at improving oversight of cryptocurrency transactions. In particular, banks are required to decline transactions if the sender’s name does not match that of the account holder.
The suggested measures are currently advisory, but should they become compulsory, the operations of local crypto peer-to-peer (P2P) exchanges could be rendered illegal. FSA officials defend their recommendations by highlighting concerns regarding user protection. They refer to data from the National Police Agency (NPA), which shows a recent increase in crypto-related fraud and illegal money transfers.
Related Posts
Furthermore, the Japanese government is actively promoting the growth of the Web3 sector within the nation, recognizing decentralized technologies as “a new form of capitalism.” The FSA also plays a crucial role in governmental initiatives, such as coordinating Japan Fintech Week.
The Financial Intelligence Unit of South Korea (KoFIU) has similarly suggested stricter regulation of the cryptocurrency sector. As stated in a press release, the regulator intends to improve oversight and inspection of crypto exchanges in 2024, which may result in the prohibition of certain platforms from operating within the local market. Additionally, efforts are being made to create a system for monitoring suspicious transactions, allowing for the proactive blocking of trades during preliminary investigations.
The KoFIU press release mentions data showing that in 2023, more than 16,000 crypto transactions potentially associated with illegal activities were recorded in South Korea, marking a 90% increase from 2022. Moreover, South Korean regulators have identified around 100 unregistered cryptocurrency entities. The increased regulation aims to protect user interests and establish a foundation for the introduction of local legislation governing the crypto market.
The cryptocurrency market in South Korea will be governed by a legal framework scheduled to be implemented in 2024. As preparations for its rollout continue, local regulators are refining and strengthening various regulations. For example, South Korea’s Financial Services Commission (FSC) plans to prohibit citizens from purchasing cryptocurrencies using credit cards.
Сообщение Japan and South Korea Strengthen Control Over Crypto Sector появились сначала на CoinsPaid Media.
