South Korea moves a step closer to legalizing cryptocurrencies
|- South Korea passes the bill that will help to legitimize digital assets.
- Cryptocurrency companies will have to comply with FATF requirements.
The National Policy Committee of the National Assembly of the Republic of Korea passed a bill that will categorize virtual currencies as digital assets. Local media outlet Korea JoongAng Daily reports.
According to the document, virtual currencies are classified as digital assets. Cryptocurrency-related companies will have to comply with the FATF's requirements to prevent money laundering. Apart from that, they will have to register with the financial intelligence unit of the Financial Services Commission (FSC).
Those companies that refuse to notify authorities of suspicious activity will not be certified and will not obtain an Information Security Management System (ISMS) certificate from state-owned Korea Internet and Security Agency (KISA).
The businesses that fail to develop their own oversight systems in compliance with the Financial Action Task Force (FATF) standards will be penalized. The FSC believes that the bill will contribute to the transparency of the cryptocurrency market, as well as legitimize investment in this type of asset.
The law is expected to come into force one year after approval.
Notably, in August, the South Korean authorities expanded the powers of the Financial Services Commission (FSC), instructing it to control trading platforms directly.
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