New Cryptocurrency Rules Imposed In South Korea
The principles to tackle the money laundering among different violations in the digital currency market came into full power in South Korea, on Tuesday. It is normal that these guidelines will be positive in the long run and will convey authenticity to the digital currency market. Prior this month, the plans to present regulations had startled the South Korean investors at first. Be that as it may, in the wake of occasions that moved the improvement of new standards, the nation displays an incredible example for different economies to build up their own particular crypto rules.
Prior this month, the regulatory expert of South Korea wanted to tackle the investors that are spooked by the theories encompassing cryptocurrency. With the new rules taking effect on Tuesday, the cryptocurrency market members are significantly more joyful and positive.
As indicated by a media source, The Financial Services Commission (FSC) of South Korea affirmed on Tuesday that the new measures that have been sketched out in a report by the body in the beginning of the month have been currently executed. In any case, a representative of FSCF said that it’s too soon to talk about the impacts of these rules yet.
According to the document that illustrates the rules and was distributed on Jan.23, the regulator is just permitting the exchange in digital currency from the genuine name bank accounts, beginning from Jan 30. The guidelines will essentially empower the banks to agree to KYC AML i.e know your customer, anti-money laundering, obligations as clarified by the document.
The FSC additionally added in the document that the goal behind the laid out measures is to essentially decrease the odds of digital currency transactions getting misused for unlawful purposes, for example, tax evasion, crimes, and money laundering.
Julian Hosp, the co-founder, and president of the cryptocurrency startup, speaking positively about these guidelines explained that:
“I think it’s the start of a crackdown on anonymity and the illegal use cases that some cryptocurrencies might have. If afterward, investors and companies have more legal security working in the ecosystem, it’s going to have some short-term downsides, but long term, it’s going to have a really, really big boost.”
The choice to implement the new guidelines came after the blended reactions from the South Korean authorities on regulation.
John Sarson, the managing partner at Blockchain Momentum that invests in blockchain and cryptocurrency related companies said these rules allows authenticity and more noteworthy scale:
“Protocols to protect investors have been what the cryptocurrency markets have been missing and it’s what the legislation in South Korea seeks to implement. It’s a good thing anytime an investment exchange knows their client and makes sure that their clients are doing things that are above board legally.”
As per Cryptocompare, Korea has around 4% denomination in bitcoin trading, with 40% transacted in Japanese yen and 30% in dollar terms. Regardless of having a little proportion, it is likely that South Korean regulations will bigly affect the market.
With the hack of $530 million worth of digital currency from Japanese exchange Coincheck, regulations have taken the spotlight once more.
