{
  "id": 831148,
  "title": "South Korea Tightens Crypto Exchange Screening",
  "url": "https://urgent.news/2026/08/14/south-korea-tightens-crypto-exchange-screening",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-14T03:22:52.000Z",
  "source": {
    "name": "BusinessKorea",
    "slug": "businesskorea",
    "url": "https://www.businesskorea.co.kr/news/articleView.html?idxno=274825"
  },
  "original_language": "en",
  "account": "The South Korean government is tightening oversight of cryptocurrency exchanges, expanding screening requirements to encompass major shareholders, significant economic crimes, and social creditworthiness. This revised Act on Reporting and Using Specified Financial Transaction Information, set to become effective on August 20, 2023, introduces a fit-and-proper screening process for the largest shareholder, major shareholders holding 10% or more of shares, and related persons of the largest shareholder. If the largest shareholder is a corporation, its largest shareholder and representative are also subject to scrutiny.\n\nThe financial soundness requirements for these exchanges are being made more stringent, mandating a debt-to-equity ratio of 200% or below, while excluding user deposits and unsettled balances from total liabilities. Compliance systems will shift from document-based verification to on-site inspections to verify organizational structures, personnel, and IT infrastructure. The change-of-report procedure will also shift from post-facto reporting to prior reporting, requiring operators to notify 30 days before a change takes effect.\n\nOperators must now maintain at least 4 AML staff members and appoint a compliance officer, and procure Information Security Management System (ISMS) certification while implementing intrusion prevention systems and data backup systems. Servers processing personal credit information must be located domestically. Certain staff members may hold concurrent positions in smaller operators. Re-registration is required by November 20, 2023, with some requirements granted a one-year grace period, but failure to comply will lead to ex-officio cancellation. Non-custodial wallet providers may be exempt if they do not hold exclusive control over private keys.",
  "summary": "The scope of screening for virtual asset service providers will be expanded from existing representatives and executives to include major shareholders, and substantive verification of financial soundness and internal control systems will be strengthened. The Korea Financial Intelligence Unit (KoFIU)",
  "key_points": [
    "South Korea expands crypto exchange screening to major shareholders and social creditworthiness.",
    "Debt-to-equity ratio limit set at 200% or below for compliant exchanges.",
    "Operators required to have 4 AML staff, compliance officer, and ISMS certification."
  ],
  "editors_take": "South Korea's stricter crypto exchange rules will likely weed out financially shaky and poorly governed operators, benefiting users and bolstering regulatory oversight in the sector.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}