South Korea Passed New Bill to Legal Cryptocurrencies
South Korean National Assembly’s National Policy Committee passed a bill on Tuesday. The bill described cryptocurrency assets as digital assets and move the crypto space one step closer to be legalized in South Korea. The bill explains that a regulatory framework will be established for cryptocurrencies.
The cryptocurrency exchanges and service providers in the country need to register and take a licence from the Country’s financial regulators and work with the rules set by the Financial Action Task Force (FATF).
All businesses based on cryptocurrencies needs to take an Information Security Management System (ISMS) from the country’s regulator Korean Internet and Security Agency (KISA). All cryptocurrency exchanges and service providers need to take the Anti-Money Laundering and Know Your Customer (KYC) verification as per the Finacial Action Task Force (FATF). Any business found to be exploiting these standards will be punished and strong actions will be taken against them.
The businesses will be penalized if they fail to establish their own oversight systems meeting Financial Action Task Force (FATF) standards.
South Korea is one of the early adopters of cryptocurrencies. South Korea opens its gates for Bitcoin and cryptocurrencies while most nations are looking to ban Bitcoin. South Korea has a huge number of cryptocurrency users. The distributed Ledger Technology (DLT) will be adopted by the country and used in many financial projects.
