Cryptocurrency bill gets committee’s approval

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Cryptocurrency bill gets committee’s approval

Cryptocurrency is one step closer to being legitimate in Korea.

On Tuesday, the National Assembly’s national policy committee passed a bill that will establish a legal foundation for virtual currencies by categorizing them as digital assets.

The Financial Services Commission (FSC) said the legislative move will help make cryptocurrencies more transparent and legitimize investment in them.

It added that the law will require virtual assets businesses to prevent money laundering and set ground rules for financial transactions.

Under the new bill, all cryptocurrency-related businesses will be required to report to and register as digital asset businesses with the FSC’s Financial Intelligence Unit (FIU).

Those failing to report, those failing to acquire an Information Security Management System (ISMS) certificate from state-owned Korea Internet and Security Agency (KISA), and those operating false-identity bank accounts will not be approved.

The businesses will be penalized if they fail to establish their own oversight systems meeting Financial Action Task Force (FATF) standards.

The bill still needs to be passed by the judiciary committee and on the main floor of the National Assembly. Once it is approved by the lawmakers, it will go into effect one year later.

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