South Korea Prepared a New Bill to Regulate Digital Assets

The South Korean National Policy Committee, which is a department of the National Assembly of the country, passed a bill according to which cryptocurrencies are classified as digital assets, Korea JoongAng Daily reports. This step should establish the rules and requirements for their further performance.

According to the Financial Services Commission (FSC), the decision of the regulator will help cryptocurrencies become more transparent, as well as legitimize investments. Moreover, it should also prevent money laundering, establish basic rules for financial transactions and help enterprises which deal with virtual assets to develop as a whole.

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The new law requires all cryptocurrency companies to register with the FSC financial intelligence unit, as well as report to the regulator. Those companies that do not, will not be able to obtain approval for access to banking services. In addition, non-compliance with the rules will result in a fine.

However, the bill still must be agreed with the Judicial Committee and approved by the National Assembly. If this happens, it will take effect in a year.

Image courtesy of RT