South Korea banned virtual asset services providers (VASPs) and their staff from trading tokens they issue, the country’s Financial Services Comission (FSC) said in a Wednesday statement.
Crypto services providers must set up internal processes for the conflict of interest rules within a month. Those who don’t will be facing suspension of business and up to KRW 100 million ($85,000) in penalties.VASPs that serve South Korean customers had to register with the FSC’s anti-money laundering arm by this past Friday. Most crypto exchanges did not make that deadline and suspended operations. Only four managed to fulfil all the criteria such that they can offer trading in Korean won.The “conflict of interest rule” was passed at a cabinet meeting on Tuesday, and seeks to prevent damage to users as well as increase transparency in the industry, the FSC said.