A Committee of the National Assembly of South Korea has approved a bill establishing a clear legal Foundation for cryptocurrencies, defining them as digital assets.
South Korea’s financial services Commission (FSC) said the legislation will make the country’s cryptocurrency industry more transparent and legalize investment in digital assets. The Commission clarified that this law is aimed at combating money laundering and meeting the basic requirements for financial transactions.
According to the new bill, all organizations working in the cryptocurrency industry are required to register with the financial intelligence Unit (FIU) and submit regular reports on their activities to it.
Companies that do not submit reports and do not receive an information security management system certificate from the Korea Internet and security Agency (KISA) will not be allowed to operate in the country. This includes those organizations that will use Bank accounts issued to 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.
The bill is currently awaiting approval by the legal Committee and the main house of the National Assembly, after which the law will enter into force in a year.
Recently, the head of the financial Supervisory Service (FSS) of South Korea said that the FSS does not plan to control the trading of digital assets until cryptocurrencies are recognized as “legal currencies”.