Recently, the parliament of South Korea passed a new amendment. As a result, digital assets are entirely legal in the East Asian country. The National Assembly amended the act on Reporting and Use of Specific Financial Information. The country’s parliament approved a landmark cryptocurrency bill.
Thus, cryptocurrency trading is now entirely into the legal system for the South Korean government. The country’s President Jae-in Moon is expected to sign the amendment passed in the country’s parliament.
It worth mentioning that it will take one year from the date of the signing, followed by a 6-month grace period.
It means that, once the required time passes, crypto-related companies such as exchanges, trusts, wallet companies, and token-sales will need to follow the new rules. One of the requirements is to have a real-name verification partnership with an approved local bank. This way, it will be easier to prevent money laundering.
Moreover, cryptocurrency-related companies would obtain an information security management system certification. Government agency, Korea Internet Security Agency will provide the certification after it examines each company. This agency has to check whether the company has the ability to protect vital information assets for itself as well as the users. Also, all exchanges must comply within six months of the enactment.
Cryptocurrency bill and local crypto community
There is no unique approach when it comes to cryptocurrencies, as can be seen from the reaction. For example, some people indicated that the introduction of the new amendment is a step forward. The cryptocurrency bill will benefit the industry.
Nevertheless, others disagree with this opinion. They believe that the added security measures might complicate the situation for most cryptocurrency exchanges. As a result, most cryptocurrency exchanges in South Korea may move to other countries. There are other factors, as well.
It will take time to learn more about the impact of this amendment on the crypto industry in the one most developed country in Asia.