South Korea updates regulatory framework for Bitcoin exchanges
South Korea revises Bitcoin exchange regulations, enforcing stricter AML/KYC compliance requirements for trading platforms.
On December 18, 2018, the South Korean government enacted updated regulations for domestic Bitcoin exchanges, focusing on anti-money laundering (AML) and know-your-customer (KYC) compliance. The Ministry of Justice and the Financial Services Commission (FSC) required all exchanges to partner with banks for real-name verification systems, maintain detailed transaction logs, and implement stronger monitoring protocols to prevent illicit activity.
Key exchanges such as Bithumb, Upbit, and Coinone reported readiness to comply, implementing technical solutions to meet regulatory standards. The regulatory update was covered by Korea JoongAng Daily, CoinDesk, and The Block, emphasizing both consumer protection and the legitimacy of the cryptocurrency sector. Analysts including Kim Ji-hoon and Min Seok-woo highlighted that the measures could stabilize markets and reduce fraud while balancing the need to foster technological innovation.These regulations were among the first in Asia to comprehensively address cryptocurrency exchange operations, setting precedents for global compliance frameworks.