South Korea’s National Assembly is progressing a bill that will provide a legal basis for cryptocurrencies in the country. The bill categorizes virtual currencies as digital assets and intends to bring regulatory clarity and transparency to crypto markets in South Korea, English-language newspaper Korea JoongAng Daily reports on Nov. 27.
According to the report, the bill was passed by the National Assembly’s national policy committee and still needs to be approved by the judiciary committee. If approved, the law would come into force in 2020, the report notes.
Under the bill, all crypto-related businesses in South Korea would be required to register with the Financial Services Commission’s (FSC) Financial Intelligence Unit (FIU) and report to the authority.
In order to be approved as a crypto firm in the country, crypto businesses will have to obtain an Information Security Management System certificate from the state-run Korea Internet and Security Agency, the report notes.
The FSC stated that the legislation will make crypto markets more transparent and legitimize investment in digital assets. The authority stressed that the bill will require crypto-related businesses to prevent illicit practices such as money laundering.