The National Assembly of South Korea is progressing a bill that will supply a legal basis for crptocurrencies in the country. Virtual currencies will be categorized as digital assets which is one of the bill’s purpose. The intention is to bring regulatory clarity and transparency to cryptocurrency markets in South Korea, according to a report by Korea JoongAng on November 27.
The bill was passed by the National Assembly’s national policy committee according to the report, and is still in need of the judiciary committee’s approval. The law would become effective in 2020 once it is approved.
In accordance to the bill, all businesses that are crypto-related are required to register with FSC’s (Financial Services Comission) Financial Intelligence Unit and report to the authority.
All cryptocurrency businesses will have to acquire an Information Security Management System certificate from the state-run Korea Internet and Security Agency before they would be approved as a Crypto firm inside the country.
The said bill aims to prevent and protect investors against money laundering.