The Financial Services Commission approved revisions to the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information, expanding registration requirements, including chief executive officers and controlling shareholders in the scrutiny of major shareholders for VASPs, and strengthening anti-money laundering (AML) and travel rule obligations.
Before
VASPs were subject to previous registration screening and AML/travel rule standards without the newly expanded scope of major shareholders and stricter compliance duties.
After
VASPs are subject to stricter registration requirements—including an expanded scope of major shareholders covering the CEO, controlling shareholder, and largest shareholder—along with enhanced AML duties for virtual asset transfers and travel rule transactions.
Source: South Korea FSC — VAUPA Enforcement
View original source →What this means for you
Centralized Exchange
Review soonWhy this matters
The regulatory change directly targets Virtual Asset Service Providers (VASPs) by tightening registration requirements to include executive and shareholder scrutiny, alongside enhanced AML and travel rule obligations. Since the company profile explicitly operates as a centralized exchange that custodies funds and performs KYC/AML and licensing, these heightened scrutiny and compliance mandates directly affect its operating license and compliance posture.
What to do
Conduct a comprehensive review of executive and major shareholder backgrounds against the expanded registration criteria and update AML and travel rule compliance procedures to meet the stricter standards.
DeFi Protocol
Doesn't applyWhy this matters
The regulatory change imposes strict registration, AML, and travel rule obligations specifically on Virtual Asset Service Providers (VASPs). Because the profile defines this entity as a fully decentralized protocol with no operator, owner, controlling party, or administrative entity to register, the VASP obligations do not attach.
Custodian
Review soonWhy this matters
As a regulated custodian operating as a VASP, the company must now subject its CEO and controlling shareholders to expanded regulatory scrutiny during registration renewals. Additionally, the tightening of anti-money laundering (AML) and travel rule obligations directly impacts its core operational responsibility of handling client asset transfers.
What to do
Conduct a comprehensive compliance review of the executive leadership and major shareholder ownership structures against the expanded registration criteria, and update AML and travel rule compliance procedures for all virtual asset transfers.