South Korea is following in the footsteps of India in terms of legalizing cryptocurrency trading and holding after passing a new amendment a few hours ago. From now on, digital assets are entirely legal in the East Asian nation.
Cryptocurrency trading is now entirely into the legal system for the South Korean government, according to a local report. To receive this outcome, the National Assembly amended the Act on Reporting and Use of Specific Financial Information.
After President Jae-in Moon signs the amendment passed in the country’s parliament, the enactment process will begin. It will take one year from the date of the signing, followed by a 6-month grace period.
Once the required time passes, cryptocurrency-related businesses, such as exchanges, trusts, wallet companies, and token-sales, will need to comply with new rules. Those include having a real-name verification partnership with an approved local bank. Thus, when a verified individual is assigned to a single bank account, it helps prevent money-laundering when they deposit or withdraw fiat currencies.
Cryptocurrency-related businesses would also need to obtain an information security management system (ISMS) certification. The Korea Internet Security Agency (KISA) provides the certification when it examines each company to ensure that it can protect vital information assets for itself and the users. All exchanges must comply within six months of the enactment. Otherwise, they risk being shut down.
The Korean new bill is coming just one day following India’s Supreme Court lifting the crypto ban by RBI from 2018.
The new bil had carried different viewpoints between cryptocurrency investors in the country. Some indicated that the introduction of the new amendment is a positive sign since security will increase following the new measures. They even referred to it as a “New Coin Age.”
However, not everyone is as optimistic: Others believe that the added security measures might push most cryptocurrency exchanges in the country to migrate outside or close. Moreover, as only a few will remain, it would open the door for them to charge higher trading fees.
Leading Korean exchange Hanbitco’s CEO, Sunga Kim, noted that the new measures would ultimately benefit the cryptocurrency space as most fraudulent companies will be eliminated:
“A foundation has been created to wash away the stigma of cryptocurrency exchanges, fraud, and debauchery and establish itself as a transparent and reliable industry. It will lead to the development of the industry with the inflow of new capital.”