Key Takeaways
South Korean lawmaker Yoon Chang-hyun proposes an modification to scrutinize the felony data of main shareholders in crypto companies.
The Monetary Intelligence Unit (FIU) can also be specializing in the eligibility of main shareholders.
The modification goals to carry transparency and regulatory compliance to the crypto market.
Legislative Intent
On September 15, Yoon Chang-hyun, a lawmaker from the Individuals Energy Social gathering, proposed an modification to the Particular Monetary Data Regulation (특금법). The modification goals to scrutinize not simply the CEOs and registered executives but additionally the main shareholders’ felony data in the course of the software and evaluate course of for crypto companies, based on decenter.
Regulatory Focus
The Monetary Intelligence Unit (FIU) has additionally fashioned a Activity Pressure (TF) to revise the necessities for crypto trade reporting and can deal with the eligibility of main shareholders. An official from Yoon Chang-hyun’s workplace acknowledged, “We now have consulted with monetary authorities and initiated the invoice.”
Authorized Dangers and Implications
The proposal comes towards the backdrop of authorized dangers involving main shareholders in crypto exchanges. For example, Tune Chi-hyung, the chairman of Dunamu (operator of Upbit), is awaiting a Supreme Courtroom trial for allegations of making pretend accounts and manipulating transactions. Equally, Lee Sang-jun, the CEO of Bithumb Holdings, is beneath investigation for receiving ‘itemizing charges’ from Kang Jong-hyun, who’s suspected of being the actual proprietor of Bithumb.
Compliance Necessities
If the modification is enacted, current crypto companies should report particulars about their main shareholders inside three months. These discovered responsible post-enactment will possible be disqualified in the course of the evaluate course of. The legislation won’t be retroactive however would require crypto companies to resume their reporting each three years.
Conclusion
The proposed modification displays the legislative intent to combine the often-volatile crypto market into the regulatory framework. The deal with main shareholders’ eligibility goals to carry a stage of transparency and trustworthiness akin to conventional finance.
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