South Korean authorities want to improve the compliance capabilities of virtual asset service providers while also tackling criminality in the country. The Korea Financial Intelligence Unit, a money-laundering and terrorist-financing-focused agency, started a consultative body meeting to boost compliance capability. The interagency unit, made up of 30 detectives from several agencies, will investigate illegal activity using virtual assets in order to give more important data to investigators. The conference was attended by five local crypto service providers, including Upbit and Bithumb, who have integrated artificial intelligence to identify problem transactions and automatically shut down relevant features. South Korean lawmakers enacted laws in June to further safeguard cryptocurrency investors, granting the Financial Services Commission and the Bank of Korea authority to monitor crypto operators and asset management firms. The new regulation also empowers authorities to impose restrictions in situations of unfair virtual asset trading.
The Financial Services Commission of Canada proposed fresh guidelines for banks and insurers to handle crypto-asset risk. When dealing with crypto-assets, the Office of the Superintendent of Financial Institutions (OSFI) advises banks and insurers on capital and liquidity concerns. The rules are divided into two sections: one for banks and one for insurers. The idea divides cryptocurrency assets into tokenized conventional assets and stablecoins, as well as unbacked crypto assets. Banks should limit their exposure to unbacked crypto assets to no more than 1%. The rules emphasize the risk weighting of tokenized and conventional assets, emphasizing that tokenized assets may have distinct market liquidity characteristics than traditional assets. Banks should consider the liquidation of crypto-asset collateral in order to fulfill legal certainty criteria.
