The South Korean parliament a few days back has passed the landmark bill to give legal status to digital currency. The country has fallen to the footsteps of the World’s biggest democracy, India for the legalization of holding & trading cryptocurrencies. So, in a nutshell, the people of this East Asian nation have the freedom to buy and sell digital assets.
Electronic Currencies Are Now Legal in South Korea
As per the recent official report coming out, the trading of digital currency has allowed cryptocurrencies in their legal. Financial system. The National Assembly of South Korea has made the amendments in their Act “Reporting and Use of Specific Financial Information.”
The president of South Korea, Jae-in Moon will ink the adornments, after this, the process of the bill implementation will take place. From the day of signing, implementation will take up to one year, with a grace period of six months.
Once the period of this bill is passed, the cryptocurrency exchanges and wallet service providers operating in the country will have to adhere to new government rulings and regulations. One of the key highlights of the regulations includes getting the real-name verified partnership with an approved local bank.
Thereby, the crypto business has to assign an individual whose account is verified as a single bank account. These criteria aim to deter any sort of money laundering activities in the country via digital currencies.
Any crypto-related company operating in South Korea is required to obtain the ISMS (Information Security Management Security) certification. This certification will be provided by KISA (Korea Internet Security Agency) to the company to make sure it can safeguard its critical information and its user data.
All the exchanges are to follow these guidelines before the six months timeline, otherwise, they may have to face strict government actions.