South Korea Expands Crypto Checks to Include Shareholders

Crypto News Regulation

New South Korean Crypto Law Expands Checks Beyond Exchange Executives

Written by Aaron S.,

Editor-In-Chief

Last Updated: January 29, 2026

Key Takeaways

South Korea’s new crypto law expands background checks to include major shareholders, not just exchange executives;
The FIU now reviews companies’ finances, internal systems, and legal history before granting crypto licenses;
Regulators can issue conditional approvals and must report AML violations involving former financial employees.

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New South Korean Crypto Law Expands Checks Beyond Exchange Executives

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South Korea's National Assembly approved an update to the country's anti-money‑laundering law for digital assets on January 29.

The update introduces tougher checks for crypto exchanges and owners of major stakes. Regulators now must review not only executives but also large shareholders.

The amendment to the Act on Reporting and Using Specified Financial Transaction Information expands the list of offenses that trigger background checks. Regulators will look into matters such as drug trafficking, tax fraud, breaches of fair‑trade law, other serious financial crimes, and violations of the crypto user protection statute.

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The Financial Intelligence Unit (FIU) gains authority to evaluate applicant firms' financial health, internal controls, past legal issues, and credibility.

Six months after enactment, the new rules take effect. This delay gives the FIU and the Financial Services Commission time to publish implementation guidance and detailed instructions for crypto service providers in South Korea.

Conditional licensing is now allowed under the revised law. Regulators can attach conditions to approvals. Exchange operators may be required to meet extra anti-money‑laundering and user‑protection standards, or implement internal reforms.

Regulators will also need to notify company leaders if a former employee is sanctioned for AML infractions. Business entities must forward the notice and keep it on file.

South Korea’s financial authorities are reconsidering a rule that requires each cryptocurrency exchange to have a single banking partner. What did they say? Read the full story.