South Korea confirmed their pro-crypto credentials yesterday when the National Assembly formally welcomed cryptocurrency into the South Korean legal system. While crypto has always been immensely popular in the tech-loving nation, it has finally been given the official seal of approval at the highest level, capping a remarkable rise for the nascent technology.
Exchanges Have Six Months to Comply
The passing of the amendment hasn’t been plain sailing, coming after a two-year process of deliberations and back and forth with regard to guidelines. The signing of the amendment means that cryptocurrency exchanges and other crypto-handling entities will need to comply with reporting requirements, although many larger exchanges are already doing so.
South Korea has cracked down on dodgy practices by exchanges in the past two years, to the point where some were on the verge of bankruptcy last year as they tried to comply. All such entities will have to obtain regulatory clearance in order to continue operating, although there will be a six-month grace period for them to be compliant.
Blockchain Industry Set to Flourish
As a result of the event, a restructuring of the domestic blockchain industry is expected to take place, with the ruling having the knock-on effect of legitimizing the blockchain and cryptocurrency sector for young developers and therefore opening up career opportunities in those areas.
In contrast, the US is at the very start of its regulatory battle with blockchain and cryptocurrency enterprises, with the muddy regulatory and taxation systems risking leaving the country in the wake of countries like China and South Korea in terms of the blockchain revolution.
Crypto Slowly Getting its Feet Under the Table
The South Korean news comes on the back of yesterday’s ruling by India’s Supreme Court that overturned the ban imposed by the Reserve Bank of India on banks withholding service from crypto exchanges.
These two huge developments further strengthen the position of cryptocurrency on the world stage and provide justification for those who have gone to great lengths to help crypto gain the acceptance it is now finally starting to.
