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South Korea's Financial Services Commission (FSC) banned domestic trading platforms from offering private currency trading services

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Exchanges will also have to report on their operations within six months of the law's implementation

Blockbeats: Virtual asset service providers in South Korea will no longer be able to handle any digital assets with a high risk of money laundering, according to a statement issued by the Financial Services Commission (FSC) on November 3. The updates are part of a guideline under the Special Payment Act, which specifically covers the legality of cryptocurrencies in South Korea.

FIU specifically mentioned "Dark COINS," a crypto-oriented cryptocurrency whose trading records are difficult for the group to track. This could affect the use of private cryptocurrencies such as Zcash (ZEC), Monero (XMR) and Dash (Dash).

The financial regulators' amendments to the Special Payments Act are expected to take effect in March 2021. The encryption act requires existing exchanges to adopt full knowledge of customer (KYC) and anti-money Laundering (AML) policies. Exchanges will also have to report on their operations within six months of the law's implementation. In addition to not handling privacy COINS, virtual asset service providers are also required to verify that a customer's real name matches personal data, such as an ID number.