South Korea to Adopt Approval System for Cryptocurrency Exchanges Like New York’s BitLicense

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Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

More information arrives from South Korea regarding the cryptocurrency world. This time, the South Korean government is analysing the possibility to adopt an approval system for cryptocurrency exchanges similar to the one implemented in New York and Japan. Apparently, the Asian government considers that the market is less heated than before.

Approval on Cryptocurrency Exchanges

South Korea has been imposing different restrictive regulations on the cryptocurrency market, individuals, financial institutions and cryptocurrency exchanges. Now, the intention is to adopt an approval system based on New York’s BitLicense system. 

According to the news outlet, BusinessKorea, the final decision will be made after the 2018 elections in the country. About this, a government official said:

“We are positively considering the adoption of an exchange approval system as the additional regulation on cryptocurrencies. We are most likely to benchmark the model against that of the State of New York that gives a selective permission.”

The financial authority of the country would be able to give licenses for cryptocurrency exchanges to operate. In August 2015, the New York State Department of Financial Services put it into operation. In Japan, the authority in charge of these regulations is the Financial Services Agency (FSA). The cryptocurrency exchanges that want to receive permission to operate must met different requirements including computer systems, customer accounts and many others.

South Korea has been imposing different restrictions to the cryptocurrency market due to its inherent volatility and untenable growth in December. The cryptocurrency community in the country has decided to gather signatures in order to stop harmful regulations to the crypto world. The petition was able to collect more than 200,000 signatures and the government must give an answer to it in the next few days.

Different cryptocurrency exchanges like Bithumb, are welcoming to new regulations due to the fact that it legitimizes the space. But FUD news have been spreading saying that the country wanted to completely ban cryptocurrency trading. This did not happen and cryptocurrency traders are able to keep performing their activities normally.

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