South Korea gives green light to crypto-currencies with a new law
The legislative and judiciary Committee of the South Korean national Assembly adopted the “law on special financial information”, the core of the crypto legislation.
The law, on 5. In March, it was adopted after due to the Coronavirus outbreak caused delays, exacerbated the quality control in the crypto industry, in particular, in the case of local crypto-exchanges, significantly. It requires that crypto-exchanges laundering policies of the Financial Action Task Force (FATF) to combat money and the prevention of the financing of terrorism must meet. For the activity in the country, the stock exchanges must also receive the approval of the Financial Services Commission (FSC) and the Korea Internet & Security Agency.
The law on special financial information requires that local exchanges are required to obtain a license for an information security management system (ISMS) by KISA. This would reduce the likelihood of hacker attacks and security breaches, a Problem, have done with the South Korean stock markets in the last two years.
To date, only six stock exchanges of the country have received an ISMS license of the KISA, including the “big Four” -UPbit, Bithumb, Coinone, and Korbit – in addition to Gopax and Hanbitco. In the context of its efforts to comply with the provisions of the South Korean stock exchanges, strengthen proactive in their efforts to quality control, by swiping digital assets that do not meet the Standards of the stock exchange of the list.
If an Asset does not have an active development team that communicates with the stock exchange, in order to solve important problems, a low level of development and low volume and having no understanding of South Korea’s crypto market, it is subjected to a rigorous Delisting process.
The local crypto industry welcomed the adoption of the new legislation. The Chairman of the Blockchain Association of South Korea, Kim Seong-ah, who also operates the large South Korean crypto-stock exchange Hanbitco, said that the law would legitimize the crypto industry in the long term.
The legislation would enable the market for crypto-exchange, stock exchanges, to avoid the bad public perception of fraud and misconduct,
she said, and added that they would provide a basis on which the industry could build trust and transparency. The market for crypto-currencies in South Korea is regarded as one of the largest in the world, so that this decision could have influenced the adaptation of crypto currencies is positive. Nevertheless, it remains to be seen whether this new capital flowing into the market and the prices of Bitcoin will increase over the long term.
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