Positive news has been coming to the crypto scene since the beginning of this March, after the lifting of the ban on digital currencies in India, followed by South Korea by passing a law certifying that digital currencies are legal.

Thus, crypto trading is now fully within the legal system of the South Korean government, according to for a local report.

This decision was reached after the National Assembly amended the Act on Reporting and Use of Specific Financial Information.

After President Jae-in Moon signs the amendment passed in the country’s parliament, the legislative process will begin.

It will take one year from the date of signing, followed by a grace period of 6 months.

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Once the required time has passed, crypto-related businesses such as cryptocurrency exchanges, credit companies, wallet companies, and token sales will need to comply with the new rules.

This includes having a real name verification partnership with an approved local bank.

Thus, when a verified person is assigned to one bank account, it helps prevent money laundering when depositing or withdrawing fiat currencies.

Cryptocurrency-related businesses will also need to obtain an Information Security Management System (ISMS) certification.

The Korea Internet Security Agency (KISA) provides the certificate when it examines each company to ensure that it can protect vital information assets for itself and users.

All trading platforms must comply within six months of the new legislation.

If they do not do so within the specified time, they risk the possibility of closing.

The new Korean bill comes just a day after India’s Supreme Court lifted the ban on cryptocurrencies.

Reactions to the new law on digital currencies

The reception of the new law was from Korean citizens with different points of view.

Some have pointed out that the introduction of the new amendment is a positive sign that security will increase in the wake of the new measures.

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They referred to the new law as the “New Currency Era.”

But not everyone is optimistic.

Others believe that the added security measures could prompt most of the country’s cryptocurrency exchanges to migrate abroad or shut down.

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In addition, only a few will remain, which will open the door for them to charge higher trading fees.

Sunga Kim, a leading CEO of Korean trading platform Hanbitco, notes that the new measures will eventually benefit the cryptocurrency space where most fraudulent companies will be eliminated.

The law was created to stave off cryptocurrency exchanges’ problems of fraud and corruption and establish themselves as a transparent and reliable industry.

This will lead to the development of the industry with the influx of new capital.

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