South Korea seems to be elevating its crypto operations. As per the latest reports, the nation plans to complete its legal infrastructure for digital assets.
The framework is expected to be completed by 2023. On the other hand, its implementation is expected to be wrapped up by 2024. With the bill, South Korea plans on adding Bitcoin and other cryptos into its institutional system.
Besides this, authorities have also approved the Bank of Korea’s plan to start a Central bank Digital Currency (CBDC). The South Korean government addressed the crypto sector within two months of their election victory.
Local reports even suggest that they might approve the Digital Assets Basic Act next year. If executed, the bill will completely regulate cryptocurrencies in the region. Its mere proposal is enough to add BTC and other cryptos into the existing institutional framework, and it will offer domestic investors better protection while trading in crypto.
Before formally adopting the legislation, authorities will collaborate with multiple well-established institutions. Some are BIS (Bank of International Settlements), FSB (Financial Stability Board), and European and American watchdogs.
Other than investors, the bill will also boost the services of crypto service providers in the region. Currently, citizens can only open crypto accounts with authorized exchanges, like Korbit, Bithumb, Upbit, and Gopal.
According to a government official, the administration is trying to bridge the gap between banks and digital asset trading accounts. It will be possible by offering real-time verification services for every crypto or other digital asset transaction.
The government also plans to elect the CBDC as the monitoring authority for issuing digital won in 2023. The initial phase for the CBDC is already completed, and the second phase is currently running. Thus, the country can expect several huge changes in its monetary infrastructure soon.