The financial authorities in South Korea will loosen regulations for crypto-based assets. In this context, it is hoped, on the one hand, to compete with the strategies of the G20 countries, and to promote, on the other hand, the growth in the industry.
At the end of last year, the South Korean government had banned ICOs. Since the end of April, however, discussed the legalization. Moreover, since the G20 countries joint control standards in relation to the crypto plan currencies, want to South Korea are now actively.
Stronger measures against illegal activities
As the Korean Times at the 7. July reported, has revised the Financial Services Commission (FSC) guidelines, in terms of “all activities” of the Korea’s leading cryptocurrency exchanges. This is possible, because you understand Bitcoin better. As an employee of the FSC said:
“The FSC has revised its rules, enhanced measures to apply, so that money can be used to prevent laundering and illegal activities or tracked, because the regulatory authority is not currencies against Crypto.”
Through the application of these KYC – and AML-guidelines you want to make crypto-currencies, above all, safer. The wrong regulation, the authority sees a risk for market manipulation and thus to a high volatility. These resulting risks to prevent, in turn, that institutional investors are active. Also, the Department of Commerce calls for prudent regulation:
“A major reversal of policy is unlikely, but the government seems to believe that a gradual shift in the attitude towards cryptographer values-based assets is required. What do regulatory authorities, is to find out how you can regulate them properly and carefully, since Korea needs to use more Blockchain technology after acquired Know-how and understanding of the possible downside of the crypto-currency trading.“
However, the FSC is still at a “early stage of the fine-tuning of the guidelines”. An official stressed that the uniform rules due to the wide range in ratings among the government authorities is a challenge. To overcome this, the plans for the use of the international cooperation of the G20 countries.