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South Korea officially legalized cryptocurrencies after the National Assembly passed a new law

    Bitcoin price soared in Korea, effect

    On March 5, the National Assembly of Korea was through Revised bill on reporting and use of special financial trading information, focusing on introducing a license system for cryptocurrency exchanges.

    Accordingly, operators such as cryptocurrency exchanges will have to report their activities to the Financial Intelligence Unit (FIU) of the Financial Services Commission after obtaining the “name verification account.” real "from commercial banks. Failure to report activities can be sentenced to a maximum of 5 years from or fined 50 million won ($ 42,000).

    The bill – to be implemented in March next year, calls on existing cryptocurrency exchanges to meet the requirements for real-name accounts and ISMS authentication, as well as to declare their activity in within 6 months after the law is enforced.

    The Financial Supervisory Authority and FIU will also strengthen the anti-money laundering (AML) system for virtual assets such as cryptocurrencies as recommended by the Financial Action Task Force before implementing the law.

    The revised bill will speed up the preparation of sub-law provisions, including the scope of virtual asset businesses that comply with AML requirements, and the conditions and procedures for issuing real-name accounts.

    Only the strong can survive?

    Up to now, only 4 major cryptocurrency exchanges – Upbit, Coinwon, Bithumb and Korbit, have used real-name accounts. Most of the other units have declared based on honeycomb accounts, through which they receive money from investors with the company's own account to support customer transactions.

    When the conditions and procedures for banks to create a real-name account to make the exchange tighter, small exchanges using honeycomb accounts will be forced to comply or leave the industry.

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    According to The Block
    Translated by ToiYeuBitcoin

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