For the first time in its history, South Korea has legalized Cryptocurrency exchange, treating it as a legal entity from today moving forward. The move to legalize the blockchain industry places South Korea in the spotlight of a country that has finally contented its position in the local economy.
According to Coin Telegraphy, the legalization of this new currency isn’t without regulatory standards, which now refers to the blockchain market as crypto asset exchange and brokerage.
Three Korean ministries – the National Statistical Office, the Ministry of Science and Technology, and the Ministry of Information and Communication – are said to have been working since the end of last month to produce the final draft of a new blockchain industry classificatory scheme by the end of July.
The report further unveils that this is the first time in history that South Korea has officially recognized this trade as a legitimate engagement in the country.
In line with the regulation, Crypto Disrupt reports that money laundering control measures are in place to foster security of the new Korea’s blockchain market.
Cryptocurrency exchanges will be required to conduct Customer Due Diligence as well as Enhanced Due Diligence exercises. They will also be required to perform sufficient background checks to ensure that foreigners are not using local cryptocurrency exchanges to buy and sell digital assets. Additionally, the exchanges will have to ensure that criminals are not using personal accounts of individuals to launder money as well as to prevent suspicious transactions and payment processing.
The goal of setting up strict safety standards is to uphold safety transactions, primarily making sure no crypto laundering – especially by criminals – take place.
A report by FX Street shows that this is not the first time a country like Japan got into crypto trading. But millions worth of crypto currencies were breached with ease.
Now Japan and South Korea to ensure that the breaches are not going to be successful in the future they started to apply strict regulatory policies and they are trying to establish industry standards regarding cryptocurrency exchange security. South Korea is taking a step further and chose to regulate the cryptocurrency exchange as banks.
Together with South Korea, Japan is now working hard to ensure that such security breaches won’t occur again.
Should Japan and South Korea apply strict regulation in the blockchain market, the two countries will have done their best to ensure their technical division isn’t just secure, but also ensure hacking never takes place again.