South Korea has legalized international transfers involving Bitcoin officially. South Korea is going to provide regulatory frameworks for Bitcoin exchanges and trading platforms.
The ruling Democratic Party of Korea Representative Park Yong-jin announced the South Korean government is about to regulate the Bitcoin market. He submitted three revisions for building a number of regulatory frameworks for Bitcoin businesses and users to contribute to the development of the bitcoin market and industry in South Korea.
One of the proposed revisions was requesting the trading platforms and businesses to retain at least $436.000 capital along with data processing facilities for KYC and AML aims. This was the beginning of introduction of several regulatory frameworks for the crypto industry. Despite the fact government of South Korea hasn’t been fully regulated yet, the government already legalized the Bitcoin service providers to implement payments, trades, and transfers.
The South Korean Foreign Exchange Transactions Act allowed fintech companies and Bitcoin service providers to become approved by the financial regulator of South Korea and FSS. Similar to Philippines, South Korea has legalized Bitcoin as money transfer method, entitling fintech companies to process up to $20.000 worth of KRW in bitcoin for users.
On February, 12th, it was reported that the central bank of Philippines legalized Bitcoin officially as a money transfer method as the Bitcoin industry experiences a huge growth in Philippines. Leading companies gained tens of millions of dollars when recording and funding thousands of new users.
When the Bitcoin market and the whole industry will be fully regulated in South Korea in the nearest future and Bitcoin will be legalized as a digital currency as a top payment method like in Japan, trading volumes of the Bitcoin exchange market in South Korea will be increased extremely.
According to market data, the Bitcoin exchange in South Korea processes more than 14% of Bitcoin trades globally, it is the third largest market after the US and Japan.