In order to comply with the new FATF’s “Travel Rule,” the South Korean government has adopted preventative measures to ensure crypto compliance across the country’s exchanges, Forkast News confirms. And while it is positive news for regulators, it might pose a complication for certain exchanges, when transferring funds.
Financial Action Task Force (FATF) had previously issued a set of rules called the “Travel Rule” that is set to monitor the movement of digital assets between crypto exchanges or other virtual asset service providers (VASP).
To meet the requirements of these new regulations, South Korea has implemented a new compliance measure, according to which only verified users may transfer funds exceeding $821, with only four official exchanges (Upbit, Bithumb, Coinone, and Korbit) meeting the requirements.
While the new set of measures should prove beneficial for compliance-related questions, not everyone is happy about the implications it further brings to the table.
The CEO of South Korea-based crypto VC Hashed, Simon Kim, has expressed his concerns: “In a state where the infrastructure was not prepared, a regulatory body with low understanding was forced to push forward. It is expected that revisions will follow to an appropriate level with criticism from the Korean community.”
Kim refers to the possible confusion among the country’s traders who might get lost in the sea of transactions, as it might prove confusing to figure out which exchanges are entitled to carry out these transactions. However, it seems that in order to stay compliant, this is the necessary evil that the traders and exchanges have to undergo.