Korea Digital Asset (KODA), South Korea’s largest institutional crypto custody service, is upgrading its anti-money laundering (AML) system to strengthen compliance ahead of new regulatory requirements. Established by Kookmin Bank, blockchain firm Haechi Labs, and investment company Hashed, KODA plays a key role in securing cryptocurrencies for major global clients.
On April 28, KODA announced that it had selected Octasolution’s AML-Prism system to bolster its risk management capabilities. The move comes as South Korea’s Virtual Asset User Protection Act is set to take effect on July 19, requiring digital asset service providers to tighten internal controls, enhance customer verification, and improve the monitoring and reporting of suspicious activities.
KODA noted that the upgrade is crucial as institutional demand for compliant crypto custody solutions is expected to rise once the law is enforced. Under the new legislation, crypto firms must also ensure that customer deposits are kept separately from operational funds, an additional safeguard to protect investors following several high-profile industry failures.
By adopting AML-Prism, the company aims to proactively meet the evolving compliance landscape and solidify its position as a trusted partner for institutional clients in the digital asset sector. This decision reflects the increasing regulatory focus in South Korea’s crypto ecosystem, aimed at restoring investor confidence after previous market disruptions. KODA’s move is part of a broader industry trend, as global custodians also invest significantly in compliance infrastructure to address heightened scrutiny in digital asset management.
Further reflecting the government’s growing focus on the sector, South Korea is also preparing to open its cryptocurrency market to international investors. In line with this ambition, officials implement additional anti-money laundering regulations to ensure a secure trading environment. King Sung-ji, head of the Financial Services Commission’s crypto division, revealed during a seminar at the National Assembly that the country is actively exploring ways to expand global participation in its digital asset market.
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