After India, South Korean financial regulators have passed a cryptocurrency bill.
South Korea announces this update one day after India’s SC lifts the ban on Cryptocurrency by RBI. This year brings a revolution in the crypto-sphere as crypto-assets become entirely legal in the East Asian nation.
Cryptocurrencies Legal In South Korea
Cryptocurrency trading is now entirely legalized by the South Korean govt. For the same, the National Assembly amended the Act on Reporting and Use of Specific Financial Information.
After the president, Jae-In Moon signs the amendment passed in the country’s parliament, the enactment process will begin. It will take a duration of 1 year from the date of the signing, followed by a six month grace period.
Crypto-related businesses such as exchanges, wallet companies, token sales, and trusts need to follow the new rules. It involves a real name verification partnership with an approved local bank. Thus, when a verified individual is assigned to a single bank account, it helps in preventing money-laundering while they deposit or withdraw fiat currencies.
Crypto-related businesses need to obtain an Information Security Management System (ISMS) certification. The certificate will be provided by the Korea Internet Security Agency (KISA) when they examine each company, to ensure that they are protecting vital information assets for itself and users. All cryptocurrency exchanges have to comply within 6 months of enactment. Otherwise, they risk being shut down.
The South Korean bill is coming just after India’s Supreme court lifts RBI ban on cryptocurrency.
The new bill has carried a different viewpoint among cryptocurrency investors in the country. Few of them indicated that the introduction of the new bill is a positive sign since security will increase following new measures. They referred to it as a “New Coin Age”.
Sunga Kim, CEO of Hanbitco, says that the new measures will give benefit to the crypto space as most of the fraudulent companies will be eliminated: “A foundation has been created to wash away the stigma of cryptocurrency exchanges, debauchery, and fraud and establish itself as a reliable & transparent industry. It will lead to the development of the industry with the inflow of new capital”.