Korea has no time to further delay the amendments of the regulation law governing the issuance and use of crypto-currencies, as otherwise, there are dangers that FAFT Financial Action Task Force) , an international anti-money laundering body, will discredit the country in its evaluation of how effective legal guideline member countries have implemented.
Although the amendments to the “Special Financial Transaction Information Reporting and Supervision Regulations” are already on the agenda of the National Assembly’s National Policy Committee for the standing committee’s review and final passage, various parties are at odds against each other over passages of the amendments.
As with the case, it still remains to be seen whether the amendments will be passed at the is autumn plenary session of the National Assembly to be legalized.
According to sources, Sohn Byungdoo, vice chairman with the Financial Services Commission of Korea, recently urged the standing committee to pass the amendments as early as possible, sending a warning signal that otherwise, the FATF would underestimate Korea’s legal status and guideline on crypto-currency-related anti money laundering practices.
According to Sohn, the results of the FATF’s evaluation on Korea’s legal efforts and guideline to prevent the money-laundering attempts using crypto-currencies like Bitcoin and Ethereum will come to surface between February and April. If the amendments are legalized, Koran would score better in the evaluation, said Sohn.
Back in June 2019, the FATF had adopted its guideline on how to prevent the crypto-currency-related money laundering attempts and urged its member countries to implement the guidelines into their law enactments or amendments.
If the FATF’s evaluation on member countries’ legal guidelines doesn’t stick by its standards, there are risks that it will degrade national sovereignty ratings of the countries, forcing them to take disadvantages in their international money transactions, or drop out of the membership.