South Korea To Pass Bill Providing Legal Foundation For Cryptos
November 27, 2019
South Korea To Pass Bill Providing Legal Foundation For Cryptos
November 27, 2019

The National Assembly of South Korea is progressing a bill that would provide a legal basis for cryptocurrencies in the country.

The bill would categorize virtual currencies as digital assets while intending to bring regulatory clarity and transparency to crypto markets in South Korea.

On Nov. 27 English language newspaper, Korea JoongAng Daily reported that the bill was passed by the National Assembly’s national policy committee and still needs to be approved by the judiciary committee. The law would come into force into 2020 if approved.

New Bill Is An Attempt To Prevent Money Laundering

The bill requires that all the businesses related to cryptos would need to be registered with the Financial Services Commission’s (FSC), Financial Intelligence Unit (FIU) and report to the authority. 

The businesses will have to obtain an Information Security Management System certificate from the state-run Korea Internet and Security Agency in order to be approved as a crypto firm in South Korea.

ALSO READ :  UK Financial Conduct Authority Grants Licenses To Two Crypto Exchanges Archax And Gemini

Financial Services Commission’s (FSC) states that the legislation will make crypto markets more transparent and legitimize investment in digital assets to prevent illicit practices such as money laundering.

Meanwhile, crypto firms will have to adopt their own monitoring systems for financial transactions in compliance with standards by the Financial Action Task Force. The report notes that those who fail to establish their own oversight systems will be penalized,

The new bill is although not the first attempt by South Korean authorities to provide an Anti-Money Laundering (AML) framework.

Source: Korea Joongang Daily | Cointelegraph


Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Jafrin Ahmed

Crypto newbie passionate about creating resourceful content on blockchain technology, cryptocurrencies and decentralized apps.