South Korean Exchanges Ready for Tough Regulations

· 14 Dec 2017 in Crypto News, Home

Important regulations are going to be established in South Korea and cryptocurrency exchanges are ready to adopt them. The exchanges running in the Asian country are from the most important in the world and manage an incredible an important Bitcoin volume. Bithumb, Coinone and Korbit are planning their strategies not to be damaged by regulations.

Cryptocurrency Exchanges in South Korea Adopt Regulations

The South Korean government has announced that it was going to regulate cryptocurrency exchanges and ban them if they do not follow strict regulations. According to the South Korean government “the objective of the law is to protect good merchants and establish a strong financial order regulating similar reception behaviour.”

With these set of regulations, the government wants to protect investors and clarify the taxation schemes. Furthermore, cryptocurrency exchanges will be subject to strict Know Your Customer and Anti Money Laundering policies.

South Korean’s cryptocurrency exchanges have given their thoughts about the regulations. Bithumb, one of the most important virtual currency exchanges in the world said:

“A good set of regulations will nurture the virtual currency market, and we would welcome that.”

South Korean authorities do not want to destroy the flourishing market, but instead, they want to give a framework to it. Besides that, these regulations will give legitimacy to the virtual currency market. Something similar has happened with the Bitcoin Futures Market. The CME and the CBOE allow important investors to place their money in different cryptocurrencies (mostly Bitcoin). That gives legitimization to the environment, as well as the regulations that don’t aim to ban cryptocurrencies.

A government official was quoted by the local media saying:

“Virtual currency regulation is bound to meet regulatory trends in major countries around the world. While there is a negative reputation attached to cryptocurrencies, the government’s stance is to allow what has to be allowed, for the benefit of the South Korean market,” he said.

In the last months, South Korea has witnessed a rush into the cryptocurrency market. The authorities have discovered different cryptocurrency Ponzi schemes that are worth more than $200 million dollars.

Image Source: CoinJoker

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