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November 30, 2017, 08:32:45 AM |
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South Korean authorities are reportedly close to putting the final touches on regulations for bitcoin and cryptocurrency exchanges. The Financial Services Commission (FSC), South Korea’s financial regulator and authority, is outlining regulations that will mandate cryptocurrency exchanges to play by its rules.
The regulator publicly revealed its intention to introduce regulations for bitcoin exchanges last year with a focus on regulatory and licensing parameters. The report suggests that the newly proposed regulations “would treat the operation of cryptocurrency exchanges (such as Bithumb, Coinone and Korbit) as unauthorized fundraising.”.
Since cryptocurrencies aren’t recognized as legal tender nor a financial instrument, the regulations will chalk cryptocurrency exchanges under ‘unauthorized fundraising’, according to the report. An official from the FSC, as quoted by Hankyoreh, elaborated: The regulations will also prevent the abuse of cryptocurrencies from criminals using it as a tool for money laundering.
Speaking on Tuesday at a forum organized by Korean financial watchdog, the Financial Inteligence Unit, FSC vice-chairman Kim Yong-beom acknowledged the rapid rise in interest and adoption of cryptocurrencies like bitcoin and Ethereum in Korean society. According to Yonhap, the regulatory official went on to state: Korean authorities’ move to regulate the cryptocurrency industry is gathering pace at a time when the country is firmly established among the world’s largest trading markets for cryptocurrencies.
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