Virtual Asset Operators Must Report 'Representative's Financial Law Violations' to Geumjeongwon by September

Special Act on Reporting and Use of Certain Financial Transaction Information to be Enforced from March 25
New Businesses Must Also Submit Reports Before Starting Operations

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[Asia Economy Reporter Wondara] Virtual asset (cryptocurrency, etc.) operators must submit related documents, including whether the representative has violated financial-related laws, and report their business to the Financial Intelligence Unit (FIU) by September 24.

According to the 'Virtual Asset Operator Reporting Manual' distributed by the Financial Supervisory Service (FSS) on the 17th, existing virtual asset operators must submit the required documents to the Financial Intelligence Unit (FIU) by September 24. New operators must go through the reporting procedure before starting their business.

The Financial Intelligence Unit will review the FSS's examination and reporting documents and determine whether there are grounds for rejection, then notify the reporter of the results within three months (45 days for change reports). However, if a request for supplementation is received, the period required for supplementation is excluded from the notification period.

The main examination items include ▲ Information Security Management System certification (Korea Internet & Security Agency) ▲ Real-name verified deposit and withdrawal accounts ▲ Qualification requirements for representatives and executives (registered executives), including violations of financial-related laws.

In particular, if there is a violation of financial-related laws, at least five years must have passed since the date the sentence of a fine or higher was completed or exempted. In the case of ex officio cancellation, it must also be confirmed whether five years have passed since the report or change report was canceled. Documents written in foreign languages must be accompanied by a Korean-translated summary and submitted after local notarization.

The 'Act on Reporting and Using Specified Financial Transaction Information,' which imposes anti-money laundering obligations on virtual asset operators at the level of the financial sector, will be enforced from the 25th of next month.

The FSS stated, "If it is unclear whether reporting is required, please inquire in advance with the Financial Intelligence Unit," and added, "Currently, the 'Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information' is under review by the Ministry of Government Legislation, so the provisions in the reporting manual may change, and changes may occur when the enforcement decree and other subordinate regulations are finalized."

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