Virtual Asset Operators Prohibited from Handling Prepaid Cards and Mobile Gift Certificates

[Asia Economy Reporter Kim Hyo-jin] Prepaid cards and mobile gift certificates will be added to the list of items that virtual asset transaction and custody service providers cannot handle.

The Financial Services Commission announced on the 2nd that it will publicly notify the amendment to the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information containing this content. The public notification period is from the 3rd of this month to the 14th of next month.

The Act on Reporting and Using Specified Financial Transaction Information defines virtual assets as "electronic tokens that have economic value and can be transferred," while limiting the range of assets that service providers can handle.

Results obtained through the use of game content under the Game Industry Promotion Act, prepaid electronic payment methods, electronic money, electronic registered stocks, and electronic bills were included in the exclusion list.

The Enforcement Decree added prepaid cards, mobile gift certificates, and electronic bonds to the list of items that virtual asset service providers cannot handle.

Virtual assets with a high risk of money laundering due to difficulty in tracking transaction details, such as "Darkcoin," are also prohibited from being handled.

The Enforcement Decree also sets standards for opening real-name verified deposit and withdrawal accounts, including separate custody of customer deposits, obtaining Information Security Management System (ISMS) certification, and separate management of customer transaction details.

A real-name verified account refers to allowing financial transactions only between virtual asset service provider accounts and customer accounts opened at the same financial company.

The Financial Services Commission plans to stipulate exceptions for issuing real-name accounts through amendments to the Financial Intelligence Unit (FIU) notices.

The regulation imposing the obligation on the sender virtual asset service provider to provide transfer-related information to the recipient when transferring virtual assets will apply starting one year after the law’s enforcement date (March 25, 2021).

This is based on the judgment that a grace period is necessary to establish an information-sharing system among virtual asset service providers.

The threshold amount for providing information when transferring virtual assets is 1,000,000 KRW or more.

This content was produced with the assistance of AI translation services.