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South Korea legalises crypto trading

By Ramla Soni

Cryptocurrency-related businesses, such as exchanges, trusts, wallet companies and token sales, will need to comply with new rules once the bill passes

South Korea has legalised cryptocurrency trading and holding, after passing a new amendment. This makes digital assets entirely legal in the country.

The amended Special Financial Transactions Information Act, which was approved by the National Assembly in November last year, will create a framework for the country’s cryptocurrency industry.

After President Jae-in Moon signs the amendment passed in the country’s parliament, the enactment process will begin. This will take one year from the date of the signing, followed by a six-month grace period.

Cryptocurrency-related businesses, such as exchanges, trusts, wallet companies, and token-sales, will need to comply with new rules once the bill is passed.

This includes having a real-name verification partnership with an approved local bank. 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 users.

A system of cryptocurrency taxation will also be introduced, which is said to likely stop anonymous trading in the country.

The Financial Intelligence Unit (FIU) will be the regulatory body that monitors the industry.

South Korea’s new bill comes a day after India’s Supreme Court lifted the cryptocurrency ban from 2018 imposed by its central bank.

FURTHER READING: India ends crypto trading ban

FURTHER READING: Qatar bans crypto trading

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