South Korea’s financial landscape could soon welcome foreign participants in its cryptocurrency trading arenas if local exchanges beef up their anti-money laundering (AML) measures. During a seminar at the National Assembly Kim Sung-jin head of the virtual asset division under the Financial Services Commission supported the inclusion of international investors in the domestic cryptocurrency market. He emphasized that enhancing AML capabilities at exchanges is crucial for this to happen.

Local restrictions currently prevent foreign investors from trading on South Korean crypto exchanges due to stringent know-your-customer (KYC) standards. Users must use local bank accounts registered under their real names to engage in cash-to-crypto transactions. According to Peter Chung Head of Research at Presto Research allowing foreign traders would align South Korea with global crypto trends and possibly eliminate the Kimchi Premium by equalizing local and global cryptocurrency prices.

With the U.S. leading a crypto innovation wave South Korea is rethinking its capital controls to ignite more vitality in its robust crypto sector. Attracting global investors could bolster the growth of the USD stablecoin market and reinforce South Korea’s position in the global financial arena pending the successful implementation of necessary regulatory measures.

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