South Korea’s Regulators Will Bar Exchanges From Offering Private Coins to Traders
Following changes to the Special Payment Act, virtual asset providers including cryptocurrency exchanges will be banned from handling private coins from March 2021 once laws are implemented. In a notice, the Financial Services Commission (FSC) of South Korea considers private coins as tools of money laundering. Additionally, exchanges will be required to enforce Know-your-Customer (KYC) and Anti-Money Laundering (AML) rules.
Private coins like Monero and ZCash are treated differently by regulators across the globe. Because of their transaction obfuscation techniques, it makes it hard for regulators and their partners to track posted transactions. Therefore, their inadequacy gives them ground to implement laws to derail privacy-protecting techniques pinned on the blockchain. The FSC now joins a long list of regulators who are apprehensive of these privacy-shielding techniques including the United States Secret Service.
Impact on the XMR Price:
Negative. If cryptocurrency exchanges don’t list the coin, its liquidity in the secondary market will decrease. This is bearish development and a move that could significantly impact the development of techniques to protect the privacy of transactors.
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