South Korea’s best financial regulator, the Financial Services Commission (FSC), has urged lawmakers to “pass the country’s first cryptocurrency bill quickly,” Bloomberg revealed for the current week. As per the agency, “Korea urgently needs crypto laws as thefts rise,” the publication conveyed, adding that “local exchanges are rife with security flaws and money laundering risks.”
Hong Seong-ki, head of the FSC virtual currency response team, said in an interview:
“We’re trying to legislate the most urgent and important things first, aiming for money laundering prevention and investor protection. The bill should be passed as soon as possible.”
The South Korean government initially declared crypto regulation in the second half of a year ago. In September, initial coin offerings (ICOs) were restricted. A crypto team was set up around then “to improve the transparency of transactions and improve the legal system to protect consumers,” Joongang Daily depicted.
From that point forward, the FSC and different regulators have reported extra crypto regulatory measures including the real name framework and trading limitations on minors and foreigners. In any case, “the problem is that these announcements have shaken the market but do not provide a proper legal framework for investor protection or market development,” the news outlet called attention to.
As per the publication, there are as of now five crypto-related laws pending at the National Assembly.
Hong was further quoted by Bloomberg claiming:
“While crypto markets have seen rapid growth, such trading platforms don’t seem to be well-enough prepared in terms of security.”