South Korea to Relax Crypto Norms
The South Korean government has reportedly made plans to loosen restrictions on cryptocurrencies based on the G20 meeting. The G20 meeting made efforts to create uniform regulations.
The meeting established July as the deadline to take the first step on “unified regulations”. The news was also confirmed by an official for the nation’s Financial Service Commission (FSC). He said that the regulatory agency is not against the cryptocurrencies and it has made revisions to address other illegal activities including money laundering.
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.
South Korea is a nation which has banned ICOs. It needs to place greater importance on blockchain technology after gaining a better understanding of cryptocurrency trading. There has been a gradual change in the ideology of government with respect to cryptocurrencies and the regulations relating to it. Previously, the government had considered cryptocurrencies as “non-financial products’ due to their volatile nature and the speculations surrounding them.
Recently, South Korea officially recognized Crypto Exchanges as regulated Banks and financial institutions. The news was reported by the local publications in South Korea.
The reported news confirmed that South Korea’s authorities have finalized their plans to categorize crypto exchanges as an industry called “Cryptocurrency Exchange and Brokerage”. This step is taken to ensure that trading platforms are able to perform at a large capacity with full support from local authorities.
For many years, the South Korean government has 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.
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