The international anti-money laundering agency, the Financial Action Task Force (FATF) has unveiled its regulatory guideline on cryptocurrency trading. Many countries are moving toward adopting the guideline, but South Korea has not made any action.
According to the recommendation, the agency defined cryptocurrencies as virtual assets and traders as virtual asset service providers, which include exchanges, digital wallet providers, and issuers of cyber currencies.
Under the recommendation, all virtual asset service providers must either get a license or report to the regulatory agency. The agency member countries could share information on virtual asset movement.
The so-called travel rule says senders and receivers of cryptocurrencies worth more than $1,000 or 1,000 Euros, must keep transaction documents and provide when financial firms request.
After one-year monitoring, they would meet next June again. The agency noted that technical problems must get solved before adopting the recommendation.
Japan is ahead of the other countries in embracing cryptocurrencies. It legalized the cryptocurrency transaction in April, 2017. Cryptocurrency exchanges can do business after reporting to the Japanese regulatory agency. So far 19 exchanges got license.
France also set in motion regulations on cryptocurrency trading.
On the other hand, South Korea blacklisted cryptocurrencies as medium for casino-like speculation. It criminalized initial coin offerings, preventing all blockchain developers from raising capital.