White Smoke Bellows for Cryptocurrencies in South Korea Following Parliamentary Amendment
A day after India’s Supreme Court lifted the ban on cryptocurrencies as it didn’t hold any water, South Korea seeks to follow similar footsteps as the nation’s National Assembly has amended the Act on Reporting and Use of Specific Financial Information. As reported on March 5, this move fully legalizes cryptocurrencies in South Korea.
Momentous Amendment
Following the passage of the amendment by the Korean Parliament, cryptocurrency holding and trading have stamped their authority in the nation’s legal system. It is speculated that this turn of events will usher in a restructuring of the country’s blockchain sector.
After President Jae-in Moon has signed the passed amendment, the enactment process will kickstart, and it is expected to take one year from the date of signing. Later on, a six month grace period will follow suit.
Once this time, lapses, crypto businesses, such as exchanges, wallet companies, and trusts, will have to adhere to the new rules and regulations. For instance, a real-name verification partnership with an approved local bank will be needed. This will come in handy in averting money laundering as a verified person will be assigned a single bank account where he/she can deposit and withdraw fiat currency to and from an exchange. Don't use plagiarised sources.Get your custom essay just from $11/page
The lengthy two-year wait
The landmarking amendment had to wait for two years for it to be passed as it was subjected to thorough deliberations, as well as trial and error procedures. Nevertheless, a happy ending is now imminent as the Korean National Assembly has given cryptocurrencies the greenlight.
South Korea has emerged to be one of the nations setting a precedent in the blockchain/crypto arena. For instance, in October 2019, it revealed that it could pump in a whopping $12.8 million USD into the blockchain industry. Later on, in January 2020, it announced its intentions of a 20% tax on cryptocurrency proceeds.
With cryptocurrencies being okayed in South Korea and India, will other nations follow suit?