Multiple countries across the globe have started to take cryptocurrencies seriously or at least have taken a deeper interest in blockchain technology. The Asian market has been a surprising pioneer in the digital asset industry, with regions like China and South Korea serving as torch holders.
South Korea went all-in on crypto this Thursday when the government announced that they will be passing a new law to legitimize cryptocurrencies in the country.
According to reports, the National Assembly of South Korea passed the Special Financial Information Law which would require local cryptocurrency exchanges to comply with the Financial Action Task Force [FATF] guidelines.
The groundbreaking bill was welcomed by cryptocurrency supporters as a step in the right direction towards global adoption. South Korea revealed that the law was delayed because of the widespread takeover of Coronavirus in the country.
Supporters of cryptocurrencies in South Korea were quick to comment that government recognition would only speed up development processes. Sunga Kim, President of the Blockchain Association of South Korea, argued that both existing and new investors should consider the industry as legitimate.
She is also part of Hanbitco, a famous South Korean exchange that would surely have loved a new state update. Ms. Sunga Kim added that the legislation would allow the crypto exchange market to avoid poor public perceptions of fraud and malpractice.
The new law will also make it mandatory for exchanges to be licensed by the Financial Services Commission[ FSC] and the Korean Internet and Security Agency[ KISA] to cater to Korean citizens. The major focus of the community will be to reduce the number of scams that exist in the cryptocurrency industry. Reports have only shown that in the past years, the frequency and intensity of fraud have only increased.
Exchanges will need to obtain something called the International Security Management System [ISMS]. This will be provided by the KSIA so as to comply with all clauses in the Special Financial Information Law. Currently, six exchanges hold the ISMS license from KISA. The six exchanges were UpBit, Bithumb, Coinone, Korbit, Gopax, and Hanbitco.
These developments come at a time when the country has been hit severely by the Coronavirus. The pandemic has affected thousands of citizens with the fatality rate climbing rapidly. The country is the few places where the virus has spread, whereas countries like China were reporting a drop in the rate of people affected. Korea is also set to witness its parliamentary elections in April and only time will tell how the country will hold up till then.