The country's bill classifies cryptocurrencies as digital assets and recognizes them as financial enterprises that will follow the FATF rules. The bill will enter into force in a year, according to a koreajoongangdaily source.
Korea's bill will make the cryptocurrency market transparent
South Korea recently took important steps to regulate the cryptocurrency space. Today, the National Policy Committee of the National Assembly of the country adopted a bill that will lead to effective crypto-supervision, although it still needs the support of lawmakers.
The new bill officially classifies cryptocurrencies as digital assets and recognizes cryptocurrencies as regulated financial companies.
The regulatory framework includes financial services commission reporting and registration with the South Korean financial regulator. Companies will have to comply with the Know Your Customer (KYC) rules, anti-money laundering (AML) rules, and customer verification policies, according to today cryptocurrency news. Companies will not receive certificates if they hide suspicious activity from the authorities. Such actions are punishable by a fine of $42,500 or imprisonment for 5 years.
Interesting in the section: Financial geography: the great crypto-plan of China
- In China, the national cryptocurrency will become an alternative asset option due to a trade conflict with the United States. Authorities will be able to continue trade with other countries.