[2018-01-03] South Korea Law Firm Fights New ‘Unconstitutional’ Crypto Trading..

[cybersofts]

South Korea Law Firm Fights New ‘Unconstitutional’ Crypto Trading Regulations



Seoul-based law firm Anguk Law Offices announced Tuesday that it had filed a constitutional appeal on Dec 30 over the South Korean government’s recent cryptocurrency trading regulations, calling them an “infringement of property rights”, The Korea Times reports.

The appeal argues that the latest government regulations of cryptocurrency trading released last week, which seek to make trading of virtual currencies in South Korea non-anonymous, are “unconstitutional”.

Anguk Law Offices argues that since cryptocurrency is not officially considered a currency or financial instrument in South Korea, there is not an applicable financial law in place to govern the trading of them.

Jeong Hee-chan, a lawyer at the law firm, told reporters that the status of virtual currencies -- whether it’s property, a commodity, or another kind of asset -- must be decided before regulations are put in place:

    "We agree that regulations are necessary. But regulation should come after related laws are implemented. The petition is also a request for the government to respect people's property rights and introduce regulations after reaching a social consensus."


Recent regulations

On Dec. 28, the South Korean government announced its plans to ban the use of anonymous virtual accounts for cryptocurrency trading in an effort to “curb virtual currency speculation”, local news agency Yonhap reported.

According to The Korea Times, most crypto exchanges in South Korea currently use virtual accounts linked to their bank accounts, as they make it easier for exchanges to manage clients’ money. 

Starting as early as Jan. 20, clients will have to use only real-name bank accounts and accounts at cryptocurrency exchanges must have matching names in order to be used for deposits and withdrawals, the publication reports.

FOMO-drive “cryptocurrency mania” in South Korea was credited with Ripple’s notable growth in the past week, which propelled the altcoin to become the second largest cryptocurrency by market capitalization.

Source: https://cointelegraph.com/news/south-korea-law-firm-fights-new-unconstitutional-crypto-trading-regulations

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[jjacob]

If the plan is only to ban anonymous trading, then it is fine. It is actually regulation and not a ban, as media are making out. Most exchanges across the world have Know Your Customer norms and practice some form of due diligence. The exchanges in South Korea are just being made to adhere to global norms.

[iamTom123]

  "We agree that regulations are necessary. But regulation should come after related laws are implemented. The petition is also a request for the government to respect people's property rights and introduce regulations after reaching a social consensus."

In my opinion, legally speaking I think there is really a basis for this petition. You can not regulate something that you are not yet recognizing because that is akin to using the state power against something that is not legally defined for what it is. There is a need for a law here defining what cryptocurrency is and how it should be treated. However, all of these hassles could have been avoided had there been adequate and honest consultations with the industry that is affected and not just imposed on what they believed to be right for the said matter. We are hoping that the court would come down with an order positive to the petitioner.

Nevertheless, what is quite clear here is that the government is really bent on regulating  cryptocurrency because the market is burgeoning and there is a need to restore order so that things can go smooth and not done like the Wild, Wild West. As for me, there is nothing wrong with regulations and it would be proper for both sides to cooperate with each other with the aim of making the industry a platform for investors and not one working against them and at the same time not allow scrupulousness operators to come in and make some havoc on unsuspecting and innocent newcomers to the fold. When the dust will settle, I am sure that South Korea can be one of the most important markets for Bitcoin and the whole cryptocurrency industry.