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The South Korean Parliament Finally Assimilates Crypto Trading

A full parliamentary Assembly session in South Korea has passed an amendment to the Act on Reporting and Use of Specific Financial Information. This is according to a local news report

In light of this amendment, the trading of crypto can now be incorporated into the South Korean legal system for it is legitimate. South President Jae-in Moon has signed it paving the way for the bill to become law of the land. The approval process should begin in about a year and a half.

For South Korean-based crypto firms and the crypto industry at large, this news is very welcomed.  According to the report, a complete overhaul of the crypto and blockchain industry is in the making thanks to this amendment.

New Requirements

In line with the requirements of this new paw, all crypto exchanges in the country are expected to conform to the country’s reporting requirements.  All crypto-related businesses such as exchanges, wallets companies, and ICOs must obtain a verified partnership with any South Korean Bank that is approved by the central bank. They then need to secure an information security management system (ISMS) certification to legalize their operations.

The challenge lies on small crypto platforms receiving a permitting license (ISMS) and partnering with banks. Most of the larger exchanges already have real-name banking systems in place with some like GoPax and Hanbitco utilizing ISMS. 

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Of the 70 or so crypto exchange ventures in operation in South Korea, only 6 have an ISMS clearance. Those without one have a 6 months grace period to acquire, after which shutdowns will be possibly done.

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