On December 10, 2019, Younggi Jung, an attorney at Kim & Chang, participated as a speaker at the Blockchain Rating System Introduction Conference.  The conference specifically focused on the Proposed Amendment to the Act on Reporting and Using Specified Financial Transaction Information (the “Specified Financial Transaction Information Act”) and a policy recommendation by the Financial Action Task Force (“FATF”).

At the conference, Mr. Jung gave a presentation entitled “Main Issues Surrounding Specified Financial Transaction Information Act and FATF Guideline,” in which he pointed out that the concern surrounding the enforcement of the Specified Financial Transaction Information Act was not the details of the regulation but the possibility of it being unclear.  He emphasized that the relevant Enforcement Decree would have to be very specific about the requirements to open real-name bank accounts.  Also noting that the banks have been passive when it came to real-name verified deposit and withdrawal accounts, he stated, “With unclear requirements, banks may arbitrarily decide whether or not the exchanges are in business.”

The Proposed Amendment to the Specified Financial Transaction Information Act has passed the National Policy Committee and is pending for resolution by the Legislation and Judiciary Committee and the Plenary Session of the National Assembly.  This conference was hosted by National Assembly member Jae-Sung Choi, Korea Blockchain Contents Association (KBCCA) and Korea Blockchain Ratings, Inc. to discuss ways to implement the Proposed Amendment to the Specified Financial Transaction Information Act and the FATF’s policy recommendation.