The ACT ON REPORTING AND USING SPECIFIED FINANCIAL TRANSACTION INFORMATION was passed by Korea’s National Assembly on March 5, 2020. This legislation classifies crypto exchanges as financial institutions to prevent money laundering and other forms of financial manipulation.
ProBit Exchange welcomes and supports this regulation that places crypto trading and crypto exchanges under a legal regulatory framework. The legal amendment is expected to resolve the legal uncertainties and unfair practices that have existed in the industry. We are certain that the amendment law will rapidly escalate ProBit Exchange’s growth.
The amendment law will take effect a year after enactment and will be in full effect around March 2021. Under the amended law, crypto exchanges must meet all specified requirements and report to the Head of Korea Financial Intelligence Unit within six months after the effective date of the amendment law.
In addition, the amendment law requires exchanges to establish a system for preventing money laundering. To this end, exchanges will need to receive ISMS verification and use real-name bank accounts. The conditions and requirements to get the real name bank accounts will be set by the Presidential Decree.
ProBit Exchange has been systematically preparing our AML systems, ISMS verification, and real name bank accounts well before this new law has been debated. ProBit Exchange has sufficient resources and capabilities to meet the requirements under the amended law. We will readily report to the Head of the Financial Intelligence Unit, which will be a stepping stone for ProBit Exchange’s advancement to become a top global exchange.
As we continue to maintain top-flight asset security and grow a transparent and efficient trading ecosystem for our users, we would like to express our gratitude for the continued support as ProBit is evolving as an officially approved exchange under the new law.