Cryptocurrency traders in South Korea, and indeed around the world, can relax a little as South Korea has announced its intentions to regulate crypto exchanges in the same way it regulates commercial banks. Regulation will be carried out by the Korea Financial Intelligence Unit (KFIU) in cooperation with other local regulators.
Kim Kyung-ik, director of KFIU, chaired a meeting to discuss existing regulations in the country, which mostly focus on combating money laundering and terrorist financing. Ken-ik also proposed stricter regulation of commercial banks and independent financial institutions. The meeting decided to create a cryptocurrency initiative, in addition to existing anti-money laundering and know-your-customer (KYC) initiatives. Then, at the meeting, a bill was developed that would entrust the task of monitoring and control of bank accounts and cryptocurrency user profiles to local financial authorities.
A KFIU spokesperson said: "Currently, under current laws, there are clear restrictions on the ability to suppress acts of money laundering on crypto exchanges, since authorities can only monitor transactions through banks. If legislator Jae-Yoon-kyun's bill passes, local authorities will be able to establish rules for crypto exchanges similar to those established for commercial banks.".
The consequences of this decision could be precisely what South Korean traders have been waiting for for so long is the recognition of cryptocurrencies as a legal form of investment. By including crypto exchanges in anti-money laundering efforts, as well as implementing KYC procedures, the industry will gain legitimacy not only in South Korea, but throughout the world.
South Korea will set a precedent for similar regulatory approaches in other countries. One country that is sure to be watching South Korea's efforts is the United States. The country has yet to decide on an approach to regulating cryptocurrencies, initial coin offerings and crypto exchanges within its jurisdiction.
According to ethereumworldnews
You May Also Like
Hong Kong is developing liberal laws for crypto platforms
The outgoing chairman of the Hong Kong Securities Authority has lifted a ban on domestic cryptocurrency exchanges and instead proposed formal regulatory methods.
Paraguay supports the construction of the largest mining farm
The Blockchain Technology Foundation has been based in South Korea since its inception, but recently its representatives were in talks with the Paraguayan government to create something big - the world's largest mining farm and cryptocurrency exchange.
