Korea Introduces Bill For Promoting Crypto Trade

Korea Introduces Bill For Promoting Crypto Trade

A bill has been introduced by South Korean lawmakers which focuses on promoting cryptocurrency trading and the development of cryptocurrency exchanges. It proposes a committee set up which would support and promote cryptocurrency trading.

Kim Sun-dong, Korean lawmaker and member of the National Assembly Political Committee made an announcement this past week saying that he has enacted the Digital Asset Trading Promotion Act.

Seoul Finance, the local media outlet reported

“‘The Digital Asset Trading Promotion Act’ includes a comprehensive plan for establishing a guideline for promoting the development of virtual currency exchanges and blockchain technology, tax reduction and exemption, measures against hacking damage, and prevention of market disturbances.”

Kim talked about the need for a law for promoting the crypto business and the industry as a whole. He mentioned Bithumb, one of the largest crypto exchanges in the world, that was recently acquired by a Singapore consortium.

Countries like Japan have already completed the regulatory procedures which aim to institutionalize cryptocurrency based transactions.

Seoul Finance said

“Those who want to operate a digital asset trading business should have more than 3 billion won [about $2.66 million] in capital, enough manpower, computerized systems, and physical equipment to be approved by the Financial Services Commission [FSC]”

In case of an exchange hack, the bill mandates that the exchange would take the responsibility for paying back the damages incurred by its customers.

Kim Sun-dong said

“The government is focusing only on the risk of virtual currency and concentrating only on the crackdown of illegal activities — In order to lead the global trend of blockchain technology development, it is necessary to prepare laws and regulations as soon as possible.”