The purpose of the legislation is to combat money laundering. The rules were published in the document on January 23. The document says that only those who use bank accounts with a real name will be permitted to trade cryptocurrency.
The new regulations came into force on January 30. According to the document new measures will prevent cryptocurrency transactions from being used for illegal activities, such as crimes, money laundering and tax evasion.
The South Korean Financial Services Commission stated today that the measures had actually entered into force. However, the press secretary said that it was still too early to talk about the consequences of those measures.
However, people from the cryptocurrency sphere are optimistic about the legislation in South Korea.
TenX co-founder, Julian Hosp thinks that the new legislation gives legitimacy to digital currencies by suppressing anonymity and illegal use cases. Meanwhile, others involved in the cryptocurrency sphere have welcomed South Korean regulation as a very necessary step in the field of digital currencies.
Despite positive community feedback, the market reacted negatively when the document was published and came into force. Earlier, the price of Bitcoin fell from its GMT open of almost $11,300 to just over $10,200. Not surprisingly, this situation caused a short-term decline in optimism regarding cryptocurrency.