South Korean lawmakers are debating on the “Know the sender” rules to restrict crypto-related funding under monetary policies.
At present crypto, adoption is at a tremendous level in every country. Most people are adopting crypto in the form of assets to trade for making money. But there are a few bad actors, which are using crypto assets to fund transactions against the laws of monetary policies.
To restrict the fund transactions with the help of crypto assets inside and outside the country, South Korean regulators proposed the “Know the sender” rule.
The KTS rule was first proposed by Kim Byung-Wook of the majority Democratic Party and Yoon Chang-Hyeon of the People’s Power Party on Oct. 28.
According to the latest reports, lawmakers of South Korea are doing research and discussion on the approval of the KTS rule, whether it should be imposed or not on the crypto industry.
Reports also claimed that most of the researchers, experts of crypto, and government officials found that there are some negative points with this rule. And most likely not imposed by the government.
If in any situation, the KTS rule gets passed then in that situation all the crypto assets users, which are involved in the crypto transactions, needed to provide the details of the sender.
In actual practice, it will apply to the crypto inclined companies, which are accepting crypto assets. Companies will be restricted to providing the details of the transactions from which place they received. That means full information about the two parties will be involved.
The company which will accept crypto also needed to report first to the Financial Services Commission (FSC).
In this way, South Korean regulators want to regulate crypto transactions inside & outside the country.