Since South Korea has a large coin market, the government will begin implementing policies about cryptocurrency more flexibly. The new policy will ease and “unify regulations” on cryptocurrency assets, making it the same as G20 nations.
The “unify regulation” also includes “strengthened policies,” and it claims the potential risks of the investment fraud and money laundering and other insecure activities.
The policy is stated by the Financial Services Commission (FSC), the committee is responsible for the monetary policy.
Officials told reporters that “establishing unified rules is a complicated issue given the broader range of assessments between government agencies. This is why the country needs close international cooperation as it is still in the early stages of fine tuning guidelines.” They added “the FSC made revisions to its rules to apply strengthened policies in order to prevent or detect money laundering and illegal activities because the regulator isn’t opposed to cryptocurrencies.”
It is not easy to truly protect and secure assets from the market since cryptocurrency is a large international industry. Blockchain technology and the business model of crypto-based assets change the market every day, so the limited regulation will be a concern that could lead to an unstable market.
“Any major reversal in policies is unlikely, but the government seems to believe a gradual shift in attitude toward crypto-based assets is needed. What regulators should do is figure out how to regulate them properly and prudently as Korea needs to put more emphasis on blockchain technology after obtaining knowhow and understanding of the possible flip-side of cryptocurrency trading,” a trade ministry official said.
The “unify regulation” has already been put into action by FSC since March.