South Korean regulators are reportedly strengthening the rule together with monitoring of digital currencies including bitcoin.
South Korea’s digital currency chore forcefulness – a grouping comprising of the country’s fundamental bank, fiscal regulators together with digital currency companies – accept discussed increased regulatory oversight into trading together with line of piece of job concern practices every bit a agency to farther consumer protection efforts.
According to Business Korea, the chore forcefulness held a articulation coming together on sun where authorities planned to innovate these increased regulations for trading with the country’s domestic exchanges. The meeting, which was attended past times the National Tax Service (NTS) together with the Korea Fair Trade Commission (KFTC) too saw plans drawn toward strengthening user authentication procedures at exchanges every bit good every bit ‘suspicious transaction reporting’ systems at banks for transactions related to digital currencies.
Financial Services Commission (FSC) chairman Kim Yong-beom, who chaired the chore forcefulness meeting, reportedly stated:
At this point, digital currencies cannot hold upwards considered money together with currency, nor fiscal products.
Furthermore, bitcoin remittance unusual currency FinTech firms volition too accept to pose upwards with increased monitoring from authorities. This, despite the South Korean regime lessening the burden for bitcoin-based FinTech firms to operate inward the province past times issuing permits to human activity every bit unusual currency transfer services.
South Korean authorities volition too reportedly recommend digital currency exchanges to include consumer protection measures when providing services.
ICO Ban?
Notably, the study too suggests that authorities volition “punish” initial money offering (ICO) fundraising platforms for violating the upper-case alphabetic lineament marketplace human activity past times raising funds through stock issuance using digital currencies.
An FSC official added:
We volition clearly province the foundations of the Act on the Regulation of Conducting Fund-Raising Business Without Permission for illegal fund-raising impersonating digital currency investment together with strengthen levels of punishment.
The take away to examine lax cybersecurity practices that has already led to a pregnant client information breach together with theft of funds inward a major South Korean bitcoin telephone commutation was too discussed, with ‘severe disciplinary action’ for whatever violations past times exchanges.
A KFTC official farther added that the chore forcefulness volition await into other concerns similar the “character of digital currency traders, taxation together with permits’ past times studying regulatory practices inward other countries earlier forming novel policies.
As reported inward July, a laid of bills leading to a regulatory framework for digital currencies could before long consider the likes of Bitcoin together with Ethereum legalized together with regulated inward South Korea.