March 4, 2024

South Korean National Assembly Committee Approves Cryptocurrency Legalization Law

A committee of the National Assembly of South Korea has approved a bill establishing clear legalthe foundation for cryptocurrencies, defining them in the category of digital assets.

South Korea Financial Services Commission (FSC)stated that this act will make the cryptocurrency industry in the country more transparent and legitimize investment in digital assets. The Commission clarified that this law aims to combat money laundering and to comply with basic requirements for financial transactions.

According to the new bill, all organizationsthose working in the cryptocurrency industry are required to register with the FIU and submit regular reports on their activities to it.

Companies that do not provide reports and do notthey will receive a certificate of an information security management system from the Korea Internet and Security Agency (KISA); they will not receive permission to conduct activities in the country. This includes those organizations that will use bank accounts drawn up by other persons.

In addition, if cryptocurrency companies do not comply with the standards of the Financial Action Task Force (FATF), such companies may be fined.

At present, the bill is awaiting approval by the Legal Committee and the main chamber of the National Assembly, after which the law will enter into force one year later.

Recently, the head of South Korea's Financial Supervisory Service (FSS) said that the FSS has no plans to control trading of digital assets until cryptocurrencies are recognized as "legitimate currencies."