Revision Bill to Introduce AML Requirements on Crypto Assets Moves Ahead at National AssemblyNov 27, 2019

The National Policy Committee of the National Assembly approved a revision bill on Reporting and Using Specified Financial Transaction Information on Crypto Assets on November 25. The revised bill imposes anti-money laundering (AML) requirements on crypto-asset business operators and stipulates requirements with which financial institutions must comply in transaction with crypto-asset business operators.

The revision bill will be reviewed by the Legislation & Judiciary Committee before it is presented at a plenary session for the final passage. If passed at the National Assembly, the bill will take effect one year after promulgation.



Crypto-asset business operators are required to report their transactions to the Korea Financial Intelligence Unit (KoFIU) under the FSC; subject to basic AML requirements (e.g. customer due diligence, suspicious transaction reporting, etc.); and bound to follow additional obligations such as keeping separate transaction details for users.

If crypto-asset business operators fail to report to KoFIU, they may face criminal penalties of maximum five years of imprisonment or fine of up to KRW50 million.


Financial institutions are required to conduct customer due diligence on crypto-asset business operators and check whether they report their crypto-asset business to KoFIU and maintain customer deposits in a separate account.

If crypto-asset business operators fail to report their business to the KoFIU or are deemed as high-risk for money laundering, financial institutions are obliged to refuse (or terminate) such transactions.


The bill will take effect one year after its promulgation to give crypto-asset business operators and financial institutions time to adapt and prepare for the new regulatory regime.

It will also give existing crypto-asset business operators a six-month transition period to report to KoFIU after the bill takes effect.


KoFIU Commissioner will be in charge of supervision while the responsibilities for inspection may be delegated to the Financial Supervisory Service (FSS).

* Please refer to the attached PDF for details.