South Korea has finalized revisions to a bill that reinforces positive sentiments toward the nation’s burgeoning cryptocurrency sector. Despite the pandemic of coronavirus affecting the cryptocurrency markets, this may be an opportune moment for Bitcoin investors in South Korea.
Revised and Revamped
After a cabinet meeting on March 17, 2019, South Korean officials approved amendments to what is known as the ‘Special Financial Information Law‘. When the law officially goes into effect in March 2021, South Korea’s regulatory framework for cryptocurrency assets will fall in line with that of the international standards as laid out by the Financial Action Task Force (FATF).
For South Korea’s cryptocurrency sector, this is a historical moment as the policies will be now official, fully legitimizing any and all businesses related to or involved with cryptocurrency. The newly revised law means that South Korean exchanges and other related firms will need to register with the nations Financial Intelligence Unit (FIU) as well as obtain a license from the Korea Internet and Security Agency (KISA) in order for their operations in the cryptocurrency market to resume.
Furthermore, South Korean exchanges are required to establish contracts with traditional commercial banks for users of their exchanges, creating virtual bank accounts that allow for exchanges to process instant withdrawals and deposits, reportedly this step will need to be taken before signing up with the FIU.
Bullish Signs for Bitcoin in South Korea
The timing of the news is significant due to the fact that South Korea is home to one of the most robust blockchain/cryptocurrency ecosystems in the world and that unfortunately, coronavirus is impacting crypto markets
With cryptocurrency exchanges such as OKEx, Bithumb and UPbit being domestic titans who have posting up huge trading figures for some years, it is likely now that with both China and South Korea showing positive signs of recovery from the Coronavirus outbreak, Bitcoin could make a decent comeback as if anything, this is could be considered to be an optimum time to invest.
In addition to this, South Korea’s Ministry of Science and ICT in partnership with the Ministry of Information and Communication Industry Promotion announced plans to pump significant amounts of funding into local blockchain/crypto startups.
At the time, Park Yoon-kyu, Minister of ICT echoed a sentiment that has been carried by South Korean officials for some time. :
“We plan to support domestic specialized companies to rapidly grow and activate the ecosystem in the early stage of the blockchain market.”