South Korea will continue to adhere to cautious …
South Korea will continue to take a cautious approach to cryptocurrency regulation
Yoon Sung Soo, candidate for the position of Chairman of the Financial Services Commission of South Korea (FSC), has confirmed that he will adhere to the agency’s current approach to regulating the cryptocurrency space, writes CoinDesk.
Yoon provided his comments in writing to the parliamentary committee on Monday ahead of Thursday’s hearing to consider his confirmation. It follows from them that in South Korea uncertainty regarding the regulation of cryptocurrencies will remain for some time, and exchanges will continue to operate outside the legal framework..
At the same time, Yoon stressed that the bills related to cryptocurrencies, which continue to be slowly considered by the National Assembly, must be approved as soon as possible. These include amendments to the Law on “Specialized Financial Information” focused on the problems of accountability, transparency and anti-money laundering..
Yoon also drew attention to the hype around cryptocurrencies, which peaked in January 2018, the excess of the bitcoin rate on local exchanges over the global one, and the potential risks of digital assets. He was skeptical about the possibility of integrating cryptocurrencies into the current financial system, noting that a reliable legal basis should be developed before this..
“The introduction of virtual currencies into the institutional finance sector could have side effects such as a resurgence of speculative mania and money laundering problems,” he wrote..
From Yoon’s laconic comments, local media concluded that FSC will continue to implement the policy approved by the previous chairman, who initiated a ban on initial coin offerings (ICOs) and advocated tougher banking rules for cryptocurrency exchanges..
His methods have led to the fact that currently only four exchanges in South Korea have access to full-fledged banking services, while the rest are forced to look for workarounds using corporate accounts. It is noted that this loophole can be closed at any time, due to which 97% of local exchanges will not be able to continue working. In addition, the result of hostile regulation was the departure of local cryptocurrency projects underground and offshore jurisdictions..
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