South Korea passes cryptocurrency regulation bill

A bill to legalize cryptocurrencies was adopted by the South Korean Parliament. Now cryptocurrency tradingfully included in the legal system of the country, and exchanges will have to comply with the new rules.

According to local media reports, the NationalThe South Korean Assembly amended the Law on the Reporting and Use of Specific Financial Information to legalize cryptocurrency trading. After President Jae-in Moon signs the amendment adopted by the country's parliament, the law will gradually come into force. This will take one year from the date of signing, followed by a six-month grace period.

After this time, cryptocurrencyCompanies, such as exchanges, trusts, wallet operators, will have to comply with the new rules. In particular, companies will need to be certified with an Information Security Management System (ISMS).

Korea Internet Security Agency (KISA)provides a certificate during the audit of each company, confirming that it can protect important data, both its own and users. All exchanges must operate in accordance with the new rules at the end of a six-month grace period. Otherwise, they may be closed.

Cryptocurrency investors reacted differentlyfor the adoption of a new law. Some noted that the introduction of the new amendment — a good sign as safety will improve as new measures are introduced. However, not everyone shares this optimism. Other cryptocurrency users believe that additional security measures could push most exchanges to move to other jurisdictions, and the remaining exchanges could raise fees.

Hanbitco Korea Exchange CEO Sunga Kim noted that the new measures will ultimately benefit the industry, as most fraudulent companies will be eliminated:

"The basis is created to remove the stigmafraud with the cryptocurrency industry and give it a reputation as a transparent and reliable industry. This will lead to the development of the industry with the influx of new capital. "

Last month, the South Central BankKorea said it is working on issuing its own bonds on the blockchain and exploring the technology's ability to record securities transactions on a distributed ledger. Previously, the country's Central Bank stated that it did not see the need to issue its own cryptocurrency. Despite the popularity of digital currencies in the country, the Central Bank is skeptical about state-owned cryptocurrencies.

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