Proposed amendment to the Act on the Protection of Financial Information, and will Oderbook sharing be affected?

The Financial Services Commission announced the amendments to the “Act on Reporting and Use of Specific Financial Information” (hereinafter referred to as the Specific Financial Information Act) effective March 25, 2021. The purpose of these amendments is to align with international standards and promote transparency in virtual asset transactions. Specifically, the revisions address concerns raised by the National Assembly’s Committee on Finance and seek to enhance transparency in virtual asset transactions.

The amendments cover the scope of virtual asset businesses and assets, reporting documents and procedures, and the criteria for initiating real-name verified deposit and withdrawal accounts, as well as the criteria for providing information during virtual asset transfers.

Furthermore, the amendments aim to reflect the recommendations of the Financial Action Task Force (FATF) and restrict transactions involving high money laundering risks. Violation of these provisions could result in a fine of up to 1 billion won.

Veat Law Firm provides comprehensive legal advisory services related to virtual assets, leveraging its broad understanding of the sector. Veat Law Firm is a key domestic partner leading the legal market in the virtual asset industry and will continue to support clients in navigating the uncertainties of the virtual asset business environment. Clients seeking legal review related to the Specific Financial Information Act amendments should contact Veat Law Firm.

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