On Wednesday, an amendment to the special reporting act passed in South Korea.
When the amendment was passed, it signified the official entry of cryptocurrency trading and holding into the legal system for the South Korean government.
According to thenews.asia, the main lynchpin of the amendment is that cryptocurrency exchanges will need to comply with reporting requirements.
When the amendment is signed into law by President Moon, it will start the enactment process which will be one year from the date of signing, followed by a 6-month grace period. This means that all entities affected by the law will need to be in full compliance by September 2021.
Exchanges, trusts, wallet companies, and ICO are now required by law to have a real-name verification partnership with an approved Korean bank. Real-name accounts prevent money laundering by assigning a verified individual to a single bank account with which they may withdraw and deposit fiat currency from and to an exchange. Also, companies must obtain an information security management system (ISMS) certification.
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