South Korea's cryptocurrency regulatory space is set to become fifty-fifty more tightly regulated with the incoming laws on financial reporting for crypto businesses in the country.

Co-ordinate to Korea JoongAng Daily, S Korea's Financial Services Commission, or FSC, has amended its fiscal reporting rules to include the cryptocurrency sector.

This amendment mandates all crypto businesses — exchanges, asset managers, wallet providers and custodial platforms — to file records of their transactions with the Financial Intelligence Unit.

The FIU is an arm of the FSC responsible for Anti-Money Laundering oversight across Republic of korea'south financial ecosystem.

Republic of korea'south crypto reporting regulation volition come up into issue on March 25. Existing virtual nugget service providers in the country will take six months to comply with the new regulatory paradigm.

Every bit role of the compliance protocols, crypto service providers in Due south Korea must adopt robust customer identification protocols. Likewise, any suspicious transaction must be flagged and reported to the FIU for farther coin laundering investigations.

Virtual asset service providers in the state that fail to abide by the provision of the crypto reporting regulation earlier Sept. 24 could confront to fifty 1000000 won ($44,000) in fines or v-year prison sentences for their master actors.

From March 25, new crypto service providers looking to plant a presence in the country will have to register with the FIU.

The incoming crypto reporting regulation is only the latest in a string of laws and guidelines related to cryptocurrency policing in South korea.

As previously reported by Cointelegraph, the National Tax Service revealed on Monday that it had identified more than 2,400 individuals who were hiding their assets in cryptocurrencies to evade taxes.

Crypto exchanges are already sharing customer information with the NTS as the tax body looks to identify more tax evaders hiding their assets in digital currencies.

Meanwhile, the state'due south crypto taxation rule will come into effect in January 2022. The law will come across capital gains taxe imposed on cryptocurrency trading turn a profit above $2,300.