Institutionalization of the Cryptocurrency Industry, the Cryptocurrency Has Been Redefined as ‘Virtual Asset’

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“This is to refine the industry’s terminology ahead of the enforcement of the Special Financial Transaction Information Act scheduled for March next year. [Financial News] The three powers, including the legislature, the judiciary, and the administration, standardized the terms and definitions called cryptocurrency and virtual currency as ‘virtual asset’. After passing the National Assembly plenary session on March 5, the amendment to Special Financial Transaction Information Act, which is expected to be enforced in March next year, redefines cryptocurrency and crypto-related businesses as virtual asset and virtual asset service providers.

The Financial Services Commission (FSC) said on the 5th, “We will actively collect opinions from the industry and private experts in the process of establishing sub-regulations,” through the reference material of ‘Passing the plenary session of the amendment to 「Special Financial Transaction Information Act」 regarding virtual asset’.
According to the National Assembly and the related industry on the 8th, the amendment to Special Financial Transaction Information Act reflecting the virtual asset service provider (VASP) licensing system recommended by the Financial Action Task Force (FATF) to each member country, such as South Korea, has defined a virtual asset as a digital token with ‘economic value’ that can be digitally traded or transferred.

The Financial Services Commission (FSC) and the Korea Financial Intelligence Unit (FIU) will specify the range of virtual assets and the range of virtual asset service providers that are subject to anti-money laundering obligations in the process of preparing sub-regulations such as the enforcement ordinance.

In particular, the legislature, the judiciary, and the administration, such as the National Assembly, the Supreme Court, and the FSC, agreed on the terms and definitions of virtual asset and virtual asset service provider. This is because the Legislation and Judiciary Committee of the National Assembly reflected the precedent of the Supreme Court in the final review of the amendment to Special Financial Transaction Information Act, and after consulting with the FSC, added the meaning of ‘economic value’ to the definition of a virtual asset.

The Supreme Court ruled in a trial in May 2018 that “Bitcoin (BTC) is a kind of ‘virtual currency’, a digital representation of economic value that can be transferred, stored and traded digitally, and an intangible asset with property value.”

The Block Post section of Financial News decided to refine the current article terms, which are used as cryptocurrency and a cryptocurrency exchange, as a virtual asset and a virtual asset exchange, in accordance with the enforcement of the amendment to Special Financial Transaction Information Act scheduled for March next year.

#Special Financial Transaction Information Act #FATF #Virtual asset

Kim Mi-hee(2020.03.08) 제도화된 암호화폐 산업, 암호화폐 용어 ‘가상자산’으로 재정의
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