Virtual asset trading is highly anonymous, which leads to money laundering and financing of terrorism. Despite the high risk and the law and systemic approaches to preventing these activities, it is difficult to identify the perpetrators. Meanwhile, international organizations such as the G20 Summit and the Anti-Money Laundering Organization (FATF), establish international standards which are required to be implemented to prevent money laundering and countering the financing of terrorism. Therefore, when financial companies conduct financial transactions with virtual asset providers there will be additional know-your-customer (KYC), anti-money laundering (AML) and countering the financing of terrorism (CFT) requirements imposed.
Cryptocurrency exchanges, wallet providers, blockchain / DLT entities which are or have conducted an initial coin offering (ICO) are legally required by law to have name and account verification partnerships with approved Korean banks.
These entities must also obtain an information security management system (ISMS) certification.