Crypto Chronicle
  • Home
  • News
  • South Korea Finalising Important Cryptocurrency Legislation
News Regulation

South Korea Finalising Important Cryptocurrency Legislation

legislation concept

South Korea’s government is in the process of finalising the countries first ever pieces of cryptocurrency and blockchain legislation, recognising the emerging sectors as a legitimate industry.

The new cryptocurrency and blockchain bill will see digital asset exchanges regulated under the jurisdiction of the FSC, and receive the same legal oversight that existing financial institutions operate under. The bill will ensure tighter enforcement of Know Your Customer (KYC), Anti-Money Laundering (AML), internal management systems and transaction monitoring, all of which will create the same security and structure that customers of commercial banks and financial service providers experience.

Exchanges are currently under the regulations of communication vendors, and are therefore beyond the remit of the Financial Services Commission (FSC). Trading platforms were operated under a simple communication vendor license, which required no base capital in order to set up. Needless to say, the current framework hindered both legitimacy of the markets as well as institutional investment.

By legitimising and regulating cryptocurrency markets with new regulations, major industry capital will be available for key structural investments. The market as a whole should experience a significant upturn if this bill and others are passed before the end of 2018.

Other sovereign nations have also begun recognising the cryptocurrency and blockchain ecosystem as an independent and growing global market. With countries like Malta already welcoming cryptocurrency projects with generous legal and tax frameworks, the international community may well witness a legislative ‘race’ to become the defacto home for the growing and potentially giant market.

Image From Shutterstock

Related posts

GAS Off the Charts with 50% Gains and Huge Volume

Mark Hartley

Crypto Adoption on the Rise: $1M CashApp Giveaway, UK Regulator Extends Licensing, Coinbase Files IPO

Mark Hartley

Tron (TRX) Founder Justin Sun Announces BitTorrent File System (BTFS) to Go Live on May 30th

Mark Hartley

Leave a Comment

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.