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Crypto ban: South Korea bans the circulation of ‘dark coins’

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TL;DR

  • South Korea to implement a crypto ban on privacy coins
  • This would affect the circulation of coins like Moreno.

Through its Financial Services Commission (FSC), the government of South Korea has announced a crypto ban on all unknown digital currencies, especially those crypto assets that are at a high risk of being used to launder money.

The Commission went on to say this new regulation is in line with its policy of trying to keep track of transactions that happen in crypto assets. They also stated that transactions in these “dark coins” are difficult to trace and track.

The financial regulator further said the new guidelines would be existing under the Special Payment Act. This law covers the legality and the operations of crypto assets within the country. 

FSC also made it known that it would be mandating crypto exchanges to implement a KYC and AML policy into their operations. The commission wants these crypto firms to confirm the identities of their users.

The exchanges are also required to provide details of their operations to the authorities regularly.

The law is expected to come into full effect by March 2021. By then, the authorities expect all crypto exchanges operating within the country to have stopped their services to such dark coins.

South Korea’s Crypto Ban to affect popular private coins

South Korea’s new rule seeking to stop the operation of private coins within the country would be affecting the circulation of some popular private coins within the country.

The crypto ban would be affecting the domestic circulations of coins like Moreno, Dash, Zcash, and a host of other crypto assets.

While this new legislation appears to be recent, most South Korea’s crypto exchanges have already stopped listing some of these private coins. 

This was being done by the firms to keep in line with the international regulations guiding the operations of crypto assets. 

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Kamsi King

King Kamsi is a fintech and digital currency writer and enthusiast. He is keenly interested in blockchain and cryptocurrency and their global adoption. When not busy with writing, he can be found hobnobbing in forums with the best minds in crypto, both developers and startup founders.

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