South Korea will consider licensing cryptocurrency exchanges

South Korean regulators are currently considering a licensing scheme for cryptocurrency exchanges, completely reversing their previous stance of banning the use of cryptocurrencies and transactions involving them.

According to the local news portal Business Korea, legislators from the created “cryptocurrency task force” are studying the possibilities of applying regulatory methods using the examples of Japan and New York. In particular, checking electronic exchange operators before allowing them to enter the market.

The New York scheme allows the operator to engage in cryptocurrency exchange, subject to obtaining a Bitlicense license. But so far, only a limited number of operators have been able to obtain such permission due to the large number of requirements. However, in Japan, this movement has become more widespread and is widely used.

South Korean officials are optimistic about the advancement of the new New York licensing model into the institutional system of the state:

“We are positive in considering the adoption of a cryptocurrency exchange approval scheme in addition to the regulation on cryptocurrency transactions.”

The licensing decision, Most likely, it will be adopted after the upcoming elections in June. Officials are confident that after this, the regulation of the cryptocurrency market in the country will become more orderly and secure.

One of the officials shared his opinion on the topic of licensing with Business Korea:

“Some believe that the government should impose taxes instead of introducing additional regulations if market volatility remains at the same level. This month we will be meeting and responding to a national petition regarding digital currencies. And with a high degree of probability we will eliminate the shortcomings of the existing system.”

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According to bitcoinist.com