After India’s great news of the Supreme Court lifting the ban on Cryptocurrency ,comes South Korea’s Crypto Bill.
The South Korean Crypto industry is rejoicing and why not, the South Korean parliament, the National assembly has finally given the green signal to the passage of the country’s first Cryptocurrency legislation. The special financial transactions which were last modified in November 2019 now will present a formal structure for the industry to operate on.
Hashed CEO, Simon Kim also is relieved because the uncertainty surrounding the regulations was under thick fog. Cryptocurrency under the law will now be segregated under the asset class by various institutions and virtual operators.
Several advocates, big and small were after the passage of the law, and with that happening, they have finally heaved a sigh of relief. With its legalization, dealings in crypto will come under the tax net. Despite this, the one benefit that it will provide is that it will attract more investors who had been shying away considering it too risky a proposition. The specifications related to crypto are based on G7’s FATF guidelines elucidating rules on what role the government will play to ensure that these asset providers namely crypto exchanges and brokerages are well within the law when they operate on it.
As per the reports, the house assuredly voted for the bill with 182 votes registered in favor of the law with zero against it. Looking at the importance of the bill, the house also had zero absenteeism. The bill will be effective in March next year which will have a clear blueprint of the taxation system also. The concept of anonymous trading which was prevalent earlier will get eliminated thanks to the new law. Financial Intelligence Unit or FIU will be the administrative body that will regulate the industry.
It was feared that the onslaught of coronavirus might delay the bill as the parliament premises were temporarily shut. Due to this, the pendency of bills to heard was mounting up which the industry insiders feared would cause further delays and snags in the process. But thanks to the deep clean process on the premises, the parliamentary sitting was successful and many bills including this were passed. The banks who hitherto questioned such dealings based on legal grounds will not take a 360-degree turn as the much-needed authenticity has now been commissioned.
Close on the heels of India, Ukraine, and Germany, South Korea has evolved and with the picture of legality setting in, it might just become a powerful source of running the economy.
Photo Credit – Flickr