While the authorities of the People’s Republic of China has warned citizens and organizations in the country to stay clear from digital currencies, another popular country, Korea is looking to take up the mantle.
Korea is close to legalizing the concept of digital currency in the country, as the policy committee from the National Assembly passed a bill on Tuesday, which proposed to establish a legal foundation for virtual currencies.
In the new bill which categorized cryptocurrencies as digital assets, the country’s financial regulator, the Financial Services Commission (FSC), wants to make cryptocurrencies more transparent and legitimate for investment.
To achieve this, companies operating in the industry will need to comply with anti-money laundering (AML) laws recently introduced by the Financial Action Task Force (FATF) or face penalties.
Additionally, the new bill requires all the crypto-related businesses in the country to report and register as digital asset businesses with the FSC’s Financial Intelligence Unit (FIU).
Businesses that operate false-identity bank accounts, or fail to report and acquire an Information Security Management System (ISMS) certificate from Korea Internet and Security Agency (KISA) will not be approved, per the report.
Meanwhile, the new bill, which comes as a proposal, still needs to be passed by the judiciary committee and on the main floor of the National Assembly for approval. It is expected to go into effect one year later, once the country’s lawmakers approve it.
Recently, Liberty Korea Party (LKP), a South Korean opposition political party, planned to establish a favorable regulatory framework for crypto-related firms.
As Coinfomania reported, Kim Gwang-Lim, an LKP sitting member of the National Assembly’s Strategy and Finance Committee, revealed that the proposed crypto regulatory framework has been in the works for more than three months.
