South Koran National Assembly has passed a crypto bill that sets the foundation of crypto regulation in the country.
South Korea passes a crypto bill regulating virtual currencies
South Korea has decided to categorize virtual currencies as digital assets as they seek to increase crypto growth in the region. As reported by a local source, the National assembly has passed a bill to regulate crypto.
The Financial Services Commission (FSC) believes that the bill would help them promote crypto growth while allowing them to keep things legal. The bill is designed to prevent illicit activities such as money laundering. The bill would give confidence to investors and institutions in the region regarding crypto assets.
All crypto-related companies must register at the FSC and report all financial dealings. This would give the FSC the power to monitor crypto activity as well as investors and companies involved in it. Meanwhile, failing to comply would result in penalty and the firm will not be able to have its bank account approved.
Currently, the crypto bill has been passed by the National Assembly’s national policy committee and still needs to pass through two other offices before it becomes law. These offices include the Judiciary Committee and the main floor of the National Assembly.
Korea is a pro-crypto currency as evident by the trade volume of Bitcoin against Korean Won. The Won is third most traded fiat against Bitcoin after US dollar and Japanese Yen. The trend of crypto assets hs continued to grow as the year 2019 saw a 64 per cent increase in investments than the previous year.