South Korea Deliberates on Crypto Regulation
South Korea is in an urgent need of international cooperation in the area of cryptocurrencies and it has been in the early stages of developing its regulations. But due to the large series of assessments among government agencies, Uniform rules represent a major challenge and pose a big problem in the nation.
Previously, the government had considered cryptocurrencies as “non-financial products’ due to their volatile nature and the speculations surrounding them. But then South Korea officially recognized Crypto Exchanges as regulated Banks and financial institutions.
The prime monetary regulator of South Korea is planning a significant organizational restructuring that features introducing some new crypto coverage initiatives. A bureau is being arranged which will be primarily devoted to monetary improvements that embrace cryptocurrencies. Apart from this, a settlement has been reached with Chinese language authorities regarding crypto and preliminary coin choices. As a part of the reforms, the contracts between Korean crypto exchanges and banks for real-name accounts will expire this month.
The prime monetary regulator of South Korea, the Financial Services Commission (FSC), mentioned it’s going to endure a “main organizational restructuring.” As a part of its further plans, it will set up a division completely for policymaking initiatives within the nation’s blockchain trade.
“The brand new division, known as the Monetary Innovation Bureau, may have a two-year lifespan. Its institution is a part of the FSC’s restructuring plan to steer monetary innovation within the coming Fourth Industrial Revolution period. It’s going to assist nurture Korea’s fintech trade, largely protecting the nation’s cryptocurrencies and blockchain expertise.”
It has also agreed to a settlement with China. The initiative between the 2 nations started because the FSS reviewed the method of building international branches for Korean insurance coverage corporations in China.
The Korea Communications Commission (KCC) along with the Korea Internet Promotion Agency (KISA) had launched an on-site investigation of top crypto exchanges. The announcement mentioned:
“The on-site inspection mainly focuses on the technical and administrative protection measures for personal information, such as access control to the personal information processing system, prevention of tampering with access logs, encryption of personal information, and prevention of malicious programs.”
The South Korean government has for many years wanted to regulate the cryptocurrency sector with practical policies and regulations. The government wanted to prevent security breaches and large-scale hacking attacks from occurring.
CoinFrenzy had earlier reported about South Korea’s plan to relax crypto norms.
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