| (1) | Virtual asset service providers (including those who intend to operate such business); hereafter in this Article the same shall apply) shall report the following to the Commissioner of the Korea Financial Intelligence Unit, as prescribed by Presidential Decree: |
| 1. | The name of the company and its representative; |
| 2. | Matters prescribed by Presidential Decree, such as the location of a place of business and contact information. |
| (2) | In the event of a modification in any matter reported in accordance with paragraph (1), such modification shall be reported to the Commissioner of the Korea Financial Intelligence Unit, as prescribed by Presidential Decree. |
| (3) | Notwithstanding paragraph (1), the Commissioner of the Korea Financial Intelligence Unit may choose not to accept a report filed by any of the following virtual asset service providers, as prescribed by Presidential Decree: |
| 1. | A person who fails to obtain certification of an information security management system; |
| 2. | A person who does not conduct financial transactions, etc. through a deposit and withdrawal account in which a real name can be verified (referring to an account that only allows financial transactions, etc. between the account of a virtual asset service provider that is opened in the same financial company, etc. (limited to the financial company, etc. prescribed by Presidential Decree) and the account of a customer of said virtual asset service provider); Provided, That excluded herefrom shall be entities determined by the Commissioner of the Korea Financial Intelligence Unit taking into account the characteristics of virtual asset transactions; |
| 3. | Where a person for whom five years have not elapsed since his or her sentence of a fine or heavier punishment declared by a court under finance-related statutes prescribed by Presidential Decree, such as this Act, the Act on the Regulation and Punishment of Criminal Proceeds Concealment, the Act on Prohibition against the Financing of Terrorism and Proliferation of Weapons of Mass Destruction, the Foreign Exchange Transactions Act, the Financial Investment Services and Capital Markets Act was completely executed (including cases where the execution of such sentence is deemed terminated) or exempted (where the virtual asset service provider is a corporation, its representative and executive officer shall be included); |
| 4. | A person for whom five years have not elapsed since a report or a report on modification was cancelled pursuant to paragraph (4). |
| (4) | Where a virtual asset service provider falls under any of the following subparagraphs, the Commissioner of the Korea Financial Intelligence Unit may cancel the report or report on modification under paragraph (1) or (2) ex officio, as prescribed by Presidential Decree: |
| 1. | Where he or she falls under any subparagraph of paragraph (3): Provided, That this shall not apply to cases falling under paragraph (3) 1, which are prescribed by Presidential Decree; |
| 2. | Where he or she reports business closure to the head of the tax office having jurisdiction over his or her place of business or where the head of the tax office having jurisdiction over his or her place of business cancels his or her business registration under Article 8 of the Value-Added Tax Act; |
| 3. | Where he or she fails to comply with an order to suspend all or part of his or her operations under paragraph (5); |
| 4. | Cases prescribed by Presidential Decree, such as filing a report or report on modification by fraud or other improper means. |
| (5) | If a virtual asset service provider falls under any of the following subparagraphs, the Commissioner of the Korea Financial Intelligence Unit may order said virtual asset service provider to suspend all or part of his or her operations for a period of up to six months, as prescribed by Presidential Decree: |
| 1. | Where he or she fails to comply with a corrective order under Article 15 (2) 1; |
| 2. | Where he or she has received warning to an institution under Article 15 (2) 2 on at least three occasions; |
| 3. | Other cases where he or she fails to take necessary measures to prevent money laundering and financing of terrorism by intent or gross negligence and which are prescribed by Presidential Decree. |
| (6) | The term of validity of the report under paragraph (1) shall be the period prescribed by Presidential Decree, which shall not exceed five years from the date of receiving the report. A person who intends to continue to engage in the same activities as part of his or her business after expiration of the term of validity of the report shall have his or her report renewed, as prescribed by Presidential Decree. |
| (7) | The Commissioner of the Korea Financial Intelligence Unit may disclose the information regarding the reporting by virtual asset service providers and measures taken by the Commissioner of the Korea Financial Intelligence Unit under paragraphs (1) through (6), as prescribed by Presidential Decree. |
| (8) | The Commissioner of the Korea Financial Intelligence Unit may entrust the duties prescribed by Presidential Decree among those related to reporting by virtual asset service providers under this Article, to the Governor of the Financial Supervisory Service under the Act on the Establishment of Financial Services Commission (hereinafter referred to as the "Governor of the Financial Supervisory Service"). |
| (9) | Necessary matters regarding the standards, conditions, and procedures for a financial company, etc.'s opening a deposit and withdrawal account in which real names can be verified under paragraph (3) 2 shall be prescribed by Presidential Decree. |
[This Article Added on Mar. 24, 2020]
[Previous Article 7 moved to Article 10 <Mar. 24, 2020>]