South korea's National Assembly is progressing a bill that volition provide a legal footing for cryptocurrencies in the country. The bill categorizes virtual currencies equally digital avails and intends to bring regulatory clarity and transparency to crypto markets in South Korea, English language-language paper Korea JoongAng Daily reports on Nov. 27.

According to the report, the bill was passed by the National Assembly's national policy committee and still needs to be approved past the judiciary committee. If canonical, the constabulary would come up into strength in 2022, the written report notes.

All crypto businesses volition take to register with the Financial Intelligence Unit

Nether the beak, all crypto-related businesses in Republic of korea would be required to annals with the Fiscal Services Committee'due south (FSC) Financial Intelligence Unit (FIU) and study to the authority.

In order to be canonical as a crypto firm in the country, crypto businesses will have to obtain an Data Security Management System certificate from the country-run Korea Internet and Security Agency, the report notes.

New bill aims to forestall coin laundering and protect investors

The FSC stated that the legislation will make crypto markets more transparent and legitimize investment in digital assets. The authority stressed that the bill volition require crypto-related businesses to forbid illicit practices such as money laundering.

Additionally, crypto firms will have to adopt their own monitoring systems for financial transactions in compliance with standards by the Financial Action Job Strength. Those who fail to establish their own oversight systems will be penalized, the report notes.

The new bill is not the outset attempt past South Korean authorities to provide an Anti-Coin Laundering (AML) framework. In early 2022, South Korean regulators banned anonymous trading on crypto exchanges in line with AML and identification efforts in the state. The FSC subsequently released a fix of revised AML guidelines for virtual currencies in June 2022.