May 28, 2023

South Korea passes cryptocurrency regulation bill

The cryptocurrency legalization bill was passed by the South Korean parliament. Now cryptocurrency trading fully 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 meeting amended the Law on Reporting and the 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 enter 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 differentlyon the adoption of a new law. Some noted that the introduction of a new amendment is a good sign, as security will increase after the introduction of new measures. However, not everyone shares this optimism. Other cryptocurrency users believe that additional security measures may push most exchanges to move to other jurisdictions, and the remaining exchanges may increase commissions.

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 central bank of south koreaHe said that he was working on the issue of his own bonds on the blockchain and was exploring the possibilities of technology for recording transactions with securities in a distributed registry. Earlier, 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 cryptocurrencies.