South Korea Approves New Law Providing Legal Basis For Crypto Businesses

By Katelyn James | November 28, 2019

South Korea’s National Assembly is looking to pass a new law, which  will provide a legal basis for digital coin in the nation. 

The new bill will redefine crypto coins as digital assets, and aims to provide proper regulation and transparency to the South Korea-based market, as reported by Korea JoongAng Daily on November 27. 

According to the report, the bill has been progressed by the National Assembly’s national policy committee. However, it still needs final approval from the judiciary committee before it can be officially in effect, beginning 2020. 

Under the new law, it is compulsory for every establishment whose work associated with crypto to obtain authorization from the Financial Services Commission’s (FSC), Financial Intelligence Unit (FIU), and report to the government. 

To properly function as a crypto business in South Korea, they need to secure an Information Security Management System certificate from the state-run Korea Internet and Security Agency. 

The FSC claimed that the new law will help provide transparency to the current markets, along with making investment in digital assets more legitimate. The government strongly emphasized that the new bill requires crypto establishments to work against criminal activities, nominally money laundering. 

Moreover, said businesses need to decide their own supervising systems, for financial transactions, which will comply with the preset standards from  the Financial Action Task Force. A penalty will fall upon any business that cannot come up with their own oversight systems.

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