The Korean National Assembly passed a new law so that cryptocurrencies are now legalized
The Korean National Assembly has just passed a law related to the Act on Reporting and Use of Specific Financial Information. Accordingly, the operation of storing and trading cryptocurrencies is now recognized by Korean law.
Korea legalizes cryptocurrencies trading in full
One of the highlights of the law is that cryptocurrency exchanges must meet the reporting requirements. Although large exchanges have almost reached the essentials, small and medium units are expected to face many challenges after the law is implemented.
This act will be required to be signed by President Moon Jae-in and will take effect six months from the date of ratification. Previously, cryptocurrency exchanges and related companies also managed this type of asset but encountered many barriers when connecting cryptocurrencies with current fiat currencies.
Exchanges, trust funds, companies, or ICO projects will have to register as authenticators with the Korean bank. This authentication process ensures the prevention of money laundering by individuals or organizations. Besides, companies must meet the requirements for an information security management system from ISMS.
The local Blockchain industry is likely to be restructured after this important event. Crypto exchanges will have to comply with reporting requirements. Large exchanges have already followed this path, but smaller platforms may find it challenging to get a license that allows them to continue trading.
The reaction of the cryptocurrency community
Cryptocurrency investors also have many mixed states after the above decision. Some argue that this is a new era of cryptocurrencies in Korea with many strict regulations. Others say that it is true that the security side will be managed, but investors will also face a burden related to the tax legal framework. At the same time, the costs will also be put up once the exchange or project has to pay extra for paperwork and records.
Still, most people go crazy for joy. Leading cryptocurrency influencers, such as popular YouTuber IvanOnTech and columnist Joseph Young, have expressed their bullish attitude towards Bitcoin and cryptocurrencies.
BREAKING: SOUTH KOREA LEGITIMIZES CRYPTO
THIS IS HUGE…
— Ivan on Tech (@IvanOnTech) March 5, 2020
However, Joseph Young called this move a big step, but not necessary.
The crypto legislation passed today in South Korea legitimizes the local crypto industry.
It strengthens AML policies and requires exchanges to register with local financial authorities to continue operating.
It’s an important one, but not as extremely big as made out to be.
— Joseph Young (@iamjosephyoung) March 5, 2020
Cryptocurrency laws passed today in South Korea legalize the local cryptocurrency industry. It strengthens AML policies and requires exchanges to register with local financial authorities to continue operations. It is an important thing, but not as huge as it was created.
The event comes a day after India’s cryptocurrency ban, imposed by RBI in 2018, was lifted. This also caused a price reaction from the community. Many believe that the lifting of India’s crypto ban, along with Halving, will take place after just over two months, which could cause a significant increase in BTC price in the long run.
After India -> South Korea legalizing cryptocurrency.
— Crypto Michaël (@CryptoMichNL) March 5, 2020
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