South Korea is following in India's footsteps in legalizing cryptocurrency trade and holding back after passing a new amendment a few hours ago. From now on, digital assets are fully legal in East Asian countries.
Cryptocurrency is now legal in South Korea
Cryptocurrency trading is now fully a legal system for the South Korean government, according to a local report. To receive this result, the National Assembly amended the Law on Reporting and Use of Special Financial Information.
After President Jae-in Moon signed an amendment passed in the country's parliament, the process of enactment will begin. It will take one year from the date of signing, followed by a grace period of 6 months.
After the necessary time has passed, cryptocurrency-related businesses, such as exchanges, trusts, wallet companies, and token-sales, must comply with new rules. That includes having an original name verification partnership with an approved local bank. So when someone who is verified is assigned to a bank account, it helps prevent money laundering when they deposit or withdraw fiat currencies.
Businesses related to Cryptocurrency also need to get an information security management system (ISMS) certification. The Korea Internet Security Agency (KISA) provides certification when examining each company to ensure that it can protect vital information assets for themselves and users. All exchanges must comply within six months of entry into force. If not, they risk being shut down.
The new Korean bill will come only one day after the Indian Supreme Court lifted the crypto ban by the RBI from 2018.
The new bill has brought a different perspective between cryptocurrency investors in the country. Some indicate that the introduction of new amendments is a positive sign because security will increase following new steps. They even call it the "New Coin Age."
However, not everyone is optimistic: Others believe that additional security measures might encourage most digital currency exchanges in the country to migrate outside or close down. In addition, because there is little left, it will open the door for them to charge higher trading costs.
CEO Hanbitco of the leading Korean stock exchange, Sunga Kim, noted that the new steps will ultimately benefit the cryptocurrency space because most fraud companies will be eliminated:
"A foundation has been created to eliminate the stigma of crypto currency exchange, fraud, and debauchery and make itself a transparent and reliable industry. This will lead to the development of industry with the entry of new capital. "
Cryptocurrency & Blockchain
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.