South Korean authorities introducing regulations on digital currencies. In the last couple of years, many experts have claimed that the entire digital currency market is based on speculation, which is something that can backfire significantly as it became obvious back in 2008 with the global economic crisis. Because of that, several countries have decided to introduce regulations that control digital currencies and what people are actually able to do with those cryptocurrencies.
The latest country that announced new regulations for this field is South Korea, wanting to reduce the number of blind areas in this field in order to protect the customers. Korean FSC or the Financial Supervisory Commission has announced that they have held a series of meeting with institutions and individuals who are dealing with this business. FSC created a task force in order to introduce stricter regulations for the market of digital currency. Part of that task force was also the National Tax Service (NTS) as well as the Korea Fair Trade Commission or KFTC.
Creating Better Control and Surveillance
According to some reports, Korean authorities are trying to implement regulations that would strengthen and improve the process of authentication during the transactions with digital currencies. Besides that, these regulations will also introduce changes to the system that banks use for reporting suspicious transactions that appear during the trading with digital currencies such as Bitcoin and others.
Additionally, these new regulations will be applied on the domestic and on the foreign digital currency market as the authorities will increase the monitoring of the providers of the overseas remittance services which are used for transferring money abroad.
Besides that, domestic digital currencies trading will also undergo changes as it will have to adapt to the new regulations. Just like it was the case with other countries in the world, Korea has also cited the fight against the money-laundering actions as the purpose of these regulations.
One of the issues specific for these regulations in Korea is the fact that the law will demand certain measures to protect consumers and one of those measures is to demand the deposits that are applied for the assets of the customer. One of the FSC’s officials has also said that the Act on the Regulation of Conducting Fund-Raising Business Without Permission will also be undergoing a change in order to incorporate parts about the digital currencies in the new version of the law.
Changing ICO Regulations as Well
The ICOs or initial coin offerings that collect funds by collecting stock issuances not in the standard for currencies but in digital one will not be allowed to operate anymore. Considering that these ICOs are legal in some other countries such as Switzerland, this regulation might cause a lot of problems when it comes to foreign digital currency markets.
Another issue that Korean authorities decided to tackle is the leakage of users’ private information published by hackers. New regulations will introduce severe punishment for those who publish personal information but also the platforms that do not provide good enough security for the users. These are just some of the areas that the new regulations will cover but there are many others that will also be put under much stricter control than it was the case before.
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