Recently, we saw that the Supreme Court of India decided to recall the ban on cryptocurrency trading in the country now we are seeing the South Korean parliament favoring the legislation of cryptocurrency trading in the country.
According to the report of TheNewsAsia on 5th March, The National Assembly of South Korea has officially passed the amendment to the Act on Reporting and Use of Specific Financial Information allowing the cryptocurrency trading and holding to enter into the legal system of the country for the government.
Crypto exchanges need to comply with the new rules
Now the crypto-related businesses such as crypto exchanges, trusts, wallet companies, and ICOs have to comply with the new rules suggested by the bill. They are required to have a real-name verification partnership with an approved Korean bank. Apart from this, it is also necessary for them to have an information security management system (ISMS) certification.
The enactment process will not start until President Jae-in Moon signs the amendment into law. However, it is going to take one year from the date of signing which is followed by a six-month grace period.
The reaction of people to South Korea’s decision
Some people in the crypto community have shown their reaction to this decision of the South Korean Parliament. One of them is the CEO of Seoul-based blockchain incubator Hashed Simon Kim. He thinks that this is a strong and powerful sign for South Korea. He expressed his view in these words:
“There has been great uncertainty regarding regulations in cryptocurrency in South Korea until now. However, with the new law, cryptocurrency has been officially classified as an asset class by the institutions and virtual asset operators are able to operate under proper law in Korea. I believe this is a strong, positive signal for South Korea moving forward and proving itself as the perfect testbed for blockchain and cryptocurrency on the global scene”
Apart from this, the CEO of the leading South Korean crypto-exchange Hanbitco Sunga Kim also steps forward in support of this decision taken by the South Korean National Assembly.
According to him, these new measures will be helpful in removing the fraudulent activities from the crypto space. He asserted:
“A foundation has been created to wash away the stigma of cryptocurrency exchanges, fraud, and debauchery and establish itself as a transparent and reliable industry. It will lead to the development of the industry with the inflow of new capital”
From these points of view, it seems that people have welcomed this move taken by the National Assembly of South Korea. However, there are some people who do not agree with it.