Reason for proposal and main contents

The current Act stipulates that the Director of the Financial Information Analysis Institute may not accept a written declaration for the start-up of a virtual asset business from persons who have been sentenced to a fine or heavier punishment or have not yet completed its execution (including cases where the execution appears to have been completed), or from persons for whom five years have not elapsed since their exemption from such punishment, under a financial-service related statute prescribed by Presidential Decree, including the Act on Regulation and Punishment of Criminal Proceeds Concealment, the Act on Prohibition against the Financing of Terrorism and Proliferation of Weapons of Mass Destruction, and the Financial Investment Services and Capital Markets Act.

However, although many cryptocurrency-related crimes are punishable not only under the financial related statutes, but also as violations of the Criminal Act and the Act on Reporting and Using Specified Financial Transaction Information, there is a risk that previously convicted cryptocurrency-related criminals who have violated laws other than financial laws may not be identified during the report acceptance process.

Therefore, the proposed amendment intends to enhance the protection of consumers of financial services while preventing the entry of previously convicted cryptocurrency-related criminals into the market by stipulating that a written declaration may not be accepted from those who have violated the Criminal Act, the Act on Reporting and Using Specified Financial Transaction Information as in cases involving violations of financial-service related statutes (Article 7 (3) 3 of the draft).