South Korea has passed the Special Finance Information Law, which will provide proper regulation for the cryptocurrency industry in South Korea, which is much needed considering the excessive amounts of crypto exchange hacks that have occurred in South Korea.
One of the most beneficial aspects of the new law is that all crypto exchanges need to obtain an information security management system (ISMS) license from the government in order to operate. Basically, this license ensures that crypto exchanges have top of the line security, which will help prevent future hacks.
Six South Korean crypto exchanges have already obtained the license, including Upbit, Bithumb, Coinone, Korbit, Gopax, and Hanbitco.
Further all crypto exchanges will have to follow Financial Action Task Force (FATF) guidelines, to prevent money laundering and terrorist financing. Additionally, crypto exchanges will need to obtain permission from the Financial Services Commission (FSC) and the Korea Internet and Security Agency in order to operate.
Overall, this new crypto law is quite strict, but it will ultimately help to protect crypto exchange users and to prevent future crypto exchange hacks. Also, it is better for the crypto industry to be legitimized via a law like this instead of being banned.