According to the news, the Korean National Assembly is working on a bill to provide a legal basis for cryptocurrencies. Virtual currencies are classified as digital assets and are designed to bring regulatory transparency to the Korean cryptocurrency market.
It is reported that the bill has been passed by the National Policy Committee of the National Assembly, but still needs to be approved by the Judiciary Committee. The report said that if approved, the bill would take effect in 2020.
Under the bill, all crypto-related businesses in South Korea must register with the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC) and report to the relevant authorities. In addition, the encryption business of these companies must obtain the information security management system certificate from the Korean Internet and Security Bureau.
The FSC said that the legislation will make the crypto market more transparent and legalize digital asset investment. Authorities stressed that the bill would require crypto-related businesses to resist illegal acts such as money laundering.
In addition, cryptocurrency companies must adopt their own financial transaction monitoring system in accordance with the Financial Action Task Force's standards. The report states that companies that fail to establish surveillance systems will be punished.
This bill is not the first attempt by South Korean authorities in anti-money laundering. In early 2018, South Korean regulators banned anonymous trading on cryptocurrency exchanges. The FSC also issued anti-money laundering guidelines for virtual currencies in June 2018.