The South Korean Parliament has adopted legislative amendments that fully incorporate cryptocurrency trading into the legal system. This will lead to a restructuring of the country’s blockchain industry, The News Asia warns.
After the amendments are signed by the president of the country, the enactment process will take one year, followed by a 6-month grace period.
Thus, blockchain companies will have to be in full compliance by September 2021.
According to the accepted standards, bitcoin exchanges, ICO issuers, wallets, and other industry participants are required to:
- comply with all financial reporting requirements;
- have a real-name verification partnership with an approved Korean bank in order to improve KYC and AML procedures;
- obtain an information security management system (ISMS) certification.
In early 2018, Korea’s FSC set guidelines for cryptocurrency exchanges. The amendments imposed an obligation for the usage of KYC systems on all platforms and prohibited the use of virtual anonymous accounts, the publication recalls.
However, until now only four Korean exchanges – Upbit, Bithumb, Coinone, and Korbit have a banking system with real names. These exchanges, as well as GoPax and Hanbitco, also use ISMS.