AML GUIDELINES, MADE STRICTER BY THE SOUTH-KOREAN WATCHDOG

Sometimes, when I hear of the word “Decentralized” in the crypto world, I always think that what blockchain can offer is freedom on the internet. But the case seems not to be the way we think of it to be. Almost each and every day that passes by, the press always release news of one regulator or the other always implementing one policy or the other to help minimize risks taken in the crypto world.

That alone, keeps me feel like asking this simple question? Is this new tech really centralized or decentralized? Although at the end, I see the reason why centralized bodies are needed to make policies that would help regulate activities taking place in the crypto space.

Just yesterday, in South Korea, their financial regulator released a new set of Anti-money Laundering (AML) which seems to be a way very much harder than the former.

Before the new policy or guidelines were put together, the country’s financial services commission (FSC) had to conduct an on-site inspection of 3 domestic banks in the country – Nonghyup, korkmin and Hana bank.

The new policy involves a process that must be completed before any trading activity takes place in the crypto market. The new policy features Customer Due Diligence (CDD) and enhanced Customer Identification (EDD) of which the information submitted must be legitimate or else, the individual or firms does not want it’s transactions to be executed.

The newly revised guidelines instructs all crypto exchanges to take up the responsibility of making sure that the foreigners do not use local exchanges, eliminate all forms of criminal acts like using personal account of others to launder money and as well eliminate all forms of suspicious transactions and payment processing.