South Korean Parliament Legitimizes Cryptocurrency Trading
Owing to this amendment, crypto trading has now become legitimized, making its way into the South Korean legal system. The bill would be turned into law after President Jae-in Moon has signed it, with the approval process beginning a year and half after.
This is an exciting news for the crypto industry, especially for the South Korean-based exchanges and platforms. The report claimed this amendment will likely cause a complete restructuring of the blockchain industry.
With the amendment passed, crypto exchanges in the country will be required to adhere to reporting requirements from the government. All crypto-related businesses such as exchanges, wallets companies and ICOs would now be required to obtain a verified partnership with an approved South Korean Bank. Furthermore, they would need to secure certification from an information security management system (ISMS).
Most of the giant exchanges are already having a real-name banking system in place with other entities such as GoPax and Hanbitco utilizing ISMS. However, the smaller and upcoming platforms may find it difficult to receive a license permitting them to continue trading.
Currently, out of the over 70 crypto exchanges present in the country, only 6 of them are having ISMS clearance. Nonetheless, those businesses that do not have the ISMS certification have been given up to 6 months after the enactment to avoid possible shut down.
Featured image courtesy of Shutterstock. Source: Cryptopress.