A huge win for the digital asset industry, as reports have it that a session of the National Assembly of the South Korean parliament has passed an amendment to the Act on Reporting and Use of Specific Financial Information. Cryptocurrency trading is reportedly now ‘legitimized’ and has made its way into the legal system for the government.
This amendment is likely to usher in a complete restructuring of the blockchain industry. With the amendment cryptocurrency exchanges in South Korea will have to adhere to reporting requirements from the government. The amendment would be turned into law once President Jae-in Moon signs it, with the approval process beginning a year after.
There are more than 70 crypto-exchanges in the country, with only 6 of them having ISMS clearance.
With the amendment passed, all digital asset entities such as exchanges, trusts, wallet companies, and ICOs would now require a verified partnership with an approved South Korean Bank. The organization would also need to secure certification from an information security management system (ISMS).
Exchanges such as Upbit, Bithumb, Coinone, and Korbit already have a real-name banking system in place with other entities such as GoPax and Hanbitco utilizing ISMS.