The National Assembly of South Korea’s legislation and judiciary committee has passed a crucial digital currency-related bill on Thursday, legalizing crypto in the country.
Dubbed Special Financial Information Law, the legislation faced multiple delays which now brings proper guidelines to the companies providing crypto-related services.
The exchanges operating in the country, from now on, have to implement the Financial Action Task Force (FATF)-recommended anti-money laundering (AML) and counter-terror financing (CTF) provisions.
The new law also made it mandatory for the exchanges to receive approval from the Financial Services Commission (FSC) and the Korea Internet & Security Agency (KISA) to offer services to Korean nationals.
The lawmakers also stress on the issue of increasing attacks on the crypto exchanges and precautionary provisions in the new law.
According to the Special Financial Information Law, the digital asset exchanges must obtain an Information Security Management System (ISMS) license from KISA to continue offering their services.
This might weed out many small exchanges that only opened businesses to ride on the bullish trend of crypto.
Notably, only six exchanges – UpBit, Bithumb, Coinone, Korbit, Gopax, and Hanbitco – currently operating in have obtained an ISMS license from KISA.
Multiple major South Korean exchanges including in the past, resulting in the loss of millions in digital currencies.
Welcoming gesture from the industry
The representatives of the crypto industry in the country including Kim Seong-ah, the chairperson of the Blockchain Association of South Korea and operator of Hanbitco, are on a welcome mode for these new regulations as they think this will legitimize digital currency in the country.
Meanwhile in India, the apex court of the country yesterday to the crypto businesses, giving steam for the growing market.
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