Bitcoin is Now Officially Legal in South Korea as a Payment Method

China has been making strides in the Bitcoin industry, and now South Korea is following suit as the country officially legalized international transfers and will soon have regulations regarding digital currency.

Earlier in July, Democratic Party of Korea Representative Park Yong-jin submitted three revisions of the Electronic Financial Transactions Act for Bitcoin users and businesses to further increase the growth of the market in South Korea.

Cointelegraph reported that one of Rep. Park’s proposals to the financial regulators of South Korea requested Bitcoin businesses and trading platforms to retain capital of around $436,000.

The revision of the Act also ordered data processing facilities for Know Your Customer (KYC) and Anti-Money Laundering (AML) purposes.

The Bitcoin industry in South Korea has yet to be fully regulated, but the government officially legalized cryptocurrency service providers to facilitate payments, transfers, and trades.

The revised bill has also started allowing financial tech companies to be approved by the Financial Supervisory Service (FSS), the nation’s financial regulator, enabling transfers of up to $20,000 worth of South Korean won in Bitcoin.

South Korea’s complete adoption of Bitcoin regulations have propelled the exponential growth rate of the digital currency.

South Korean Bitcoin traders faced asking prices of $4,500 at the end of May as the digital currency’s price continues to go up.

The South Korean Bitcoin exchange market already accounts for over 14% of Bitcoin trades around the world, making it the third largest behind Japan and the U.S.

The region has also seen the rise of startups devoted to Bitcoin remittance and the advancement of fintech, according to Bitcoin.com.

Feature Image via Flickr / Fabian Figueredo (CC BY-SA 2.0)

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