South Korea is following in the footsteps of India in terms of legalizing cryptocurrency trading and holding after passing a new amendment.
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 came just one day following India’s Supreme Court lifting the crypto ban by RBI from 2018.