The Financial Intelligence Unit (FIU) under the South Korean Financial Services Commission will begin on-site inspections of the country’s currency market exchange GDAC on March 6, focusing on the establishment and operation of the anti-money laundering (AML) system. This is the first time financial authorities have conducted detailed inspections of currency market exchanges through on-site inspections. GDAC Exchange received a notice from the regulatory agency on on-site inspection on February 23.

The director of the FIU Virtual Assets Inspection Department said, “We plan to select the inspection objects based on the number of users, transaction amount, and whether they are the objects of interest. First, we will inspect the AML system of market operators that convert cash into virtual assets.” The risk of money laundering is heightened during the conversion of cash into virtual assets.

Last year, FIU targeted the currency market and wallet operators without going through inspection procedures, and only conducted individual symposiums and suggestions and consultations related to money laundering. The two-week on-site inspection that was conducted was in stark contrast.