South Korea is drafting a cryptocurrency bill that will classify virtual currencies as digital assets

According to Bitpush, the National Assembly of South Korea is drafting a bill to provide a legal basis for cryptocurrencies.

According to the English version of the Korea Daily, the bill classifies virtual currencies as digital assets and aims to bring regulatory clarity to South Korea’s cryptocurrency market.

The bill has been passed by the National Assembly's National Policy Committee but still needs to be approved by the Judiciary Committee, the report said. If approved, the bill will come into force in 2020, the report said.

According to the bill, all crypto-related companies in South Korea must register with the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC) and report to relevant authorities. In addition, the crypto businesses of these companies must obtain an information security management system certificate from the Korea Internet and Security Agency.

The FSC said the legislation will make the crypto market more transparent and legalize digital asset investments. The authority stressed that the bill will require businesses related to cryptocurrencies to resist illegal activities such as money laundering.

In addition, cryptocurrency companies must adopt their own financial transaction monitoring systems in accordance with the Financial Action Task Force standards. Companies that fail to establish monitoring systems will be punished, the report states.

This bill is not the first attempt by South Korean authorities to combat money laundering. In early 2018, South Korean regulators banned anonymous cryptocurrency exchanges. The FSC also issued anti-money laundering guidelines for virtual currencies in June 2018.

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AuthorXiu MU