Following the news about possible Bitcoin legalization in South Korea, we are glad to share the following: Bitcoin in South Korea is officially legal!
24 July, AtoZForex – It happened! South Korea finally has officially legalized international Bitcoin transfers. Previously, the country has been eyeing the opportunity to provide a regulatory framework for Bitcoin trading platforms and exchanges.
Bitcoin in South Korea is officially legal
Earlier this July, AtoZForex reported that Bitcoin in South Korea will be legal. That time, South Korean authorities have informed the public about their intentions to review the regulatory rules for cryptocurrencies. The Representative of the leading Democratic Party of South Korea, Park Yong-Jin, has announced this decision.
Mr. Park and his colleagues needed to revise Electronic Financial Transactions Act as a first step of the process. This has ordered businesses and other firms that involve cryptocurrencies to retain capital of at least $436,000. Such companies include South Korean cryptocurrency trading platforms and Bitcoin exchanges. Moreover, the revision of the Act ordered for implementation of strict KYC and AML practices. Son Ji-Hyoung of the Korea Herald (local reports) stated:
“Under the bill that aims to revise the Electronic Financial Transactions Act, traders, brokers, or other business entities involved in cryptocurrency transactions would be required to get regulatory approval from the Financial Services Commission. The requirements include the retention of the capital of at least 500 million won ($436,300) and data processing facilities.”
Following this, the South Korean authorities have introduced some of the regulatory frameworks for the Bitcoin industry. Even though the South Korean Bitcoin industry still is not fully regulated, the South Korean government officially legalized Bitcoin service providers to facilitate payments, transfers, and trades.
South Korea Bitcoin legalization Bitcoin price impact
Local online reports stated that the revised South Korean Foreign Exchange Transactions Act now allows Fintech companies and Bitcoin service providers to fall under the regulations of the Financial Supervisory Service (FSS). The FSS is the financial regulator of South Korea. Thus, all of the three biggest exchanges, along with other small cryptocurrency involving firms will need to obtain the license.
Moreover, South Korea has officially legalized Bitcoin as a payment method. This enables Fintech companies to transfer up to $20,000 worth of South Korean Won in Bitcoin for users.
When South Korea will adopt complete Bitcoin regulations, trading volumes of the South Korean exchange markets will most likely grow at a rapid speed. This consequently will drive the Bitcoin prices up. In fact, the South Koran Bitcoin exchange market already accounts for 14 percent of global Bitcoin trades.
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