Korea to Ease Cryptocurrency Regulations

Korea to Ease Cryptocurrency Regulations

Korea has a new governor Yoon Suk-heun who will lead the Financial Supervisory Service (FSS). He has announced that the regulations related to the cryptocurrency market in Korea will become eased to help the market thrive in a technological country like Korea.

Yook Suk-heun was a visiting professor of business administration at Seoul National University. He was named to lead the Financial Supervisory Service and will begin work tomorrow, May 8th.

He is known for being reform-minded with experience as a bureaucrat which is much needed in Korea which has a population of people who love cryptocurrency.

Yook Suk-heun told reporters, “Regarding cryptocurrencies, there are some positive aspects…The FSS will collaborate with the FSC when an inspection of policies and financial institutions has different configurations associated with different scopes. FSC inspects policies, while the FSS examines and supervises financial institutions but with the oversight of the FSC.”

FSC is the Financial Services Commision which is South Korea’s top financial regulator and is responsible for helping direct the FSS.

A significant dent in the cryptocurrency market in Korea was seen due to a banning order on initial coin offerings (ICO) in September 2017 and a ban on all anonymous cryptocurrency trading in January 2018. It was all meant to curtail the illegal activities taking place and ensuring KYC enabled practices.

A Bithumb official told Korea Times about why this move upset the whole cryptocurrency market, “Markets expected the introduction of the real-name registration system would have been helpful to revive trading, but these efforts failed as local banks were reluctant to invite more crypto traders.”

A representative of Upbit which is a South Korean cryptocurrency exchange opted for regulations. “We don’t oppose regulations. But you can’t entirely kill the markets by simply imposing regulations. What the new FSS chief should think about is how the regulators should provide remedies to help crypto trading and blockchain technology get better, ” the representative said.

Upbit is operated by Dunamu, whose CEO o Chi-hyung has said that the easing in regulations for cryptocurrencies will help South Korea become the global mecca of blockchain based technologies.

ICO’s are also bound to become legal again; with a politician from South Korea’s ruling party doing all he can to accomplish the reversal of laws.

Cryptocurrency fans in South Korea have been waiting for this positive news for a while now!

Image Source: “Flickr”

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