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The South Korean National Assembly National Policy Committee approved the bill, which equates cryptocurrencies with digital assets, Korea Joongang Daily reports.
The bill aims to legitimize virtual assets in the country, and approval by the Committee is one of the essential steps towards the final ratification of the document.
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According to the Financial Services Commission (FSC), this step will make the cryptocurrency industry more transparent and legitimize investments in tokens.
In accordance with the bill, companiesThose who work with cryptocurrencies must comply with the FATF requirements for preventing money laundering, and must also be registered with the FSC financial intelligence unit.
Failing certification and violating the requirements of the company will be fined up to 50 million won (about 42.5 thousand dollars) or its management may receive a prison term of up to five years.
The bill must be approved by the committee on legal issues and in the main chamber of the National Assembly. After completion of all necessary procedures, it will enter into force one year later.