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Crypto regulation: 578 cryptocurrencies under scrutiny by South Korean authority

South Korea

TL;DR Breakdown

  • South Koran authority analyzing 578 crypto for proper crypto regulation
  • FSC boss notes that all crypto exchange must be under regulators control
  • Crypto firms in South Korea have threatened to go to court over stringent regulation

Towards proper crypto regulation, South Korean regulators have said that they are currently analyzing data on 578 cryptocurrencies as they deliberate on four crypto-related bills to regulate cryptos.

“We are currently doing groundwork by searching for and analyzing data on 578 coins that have various forms,” the chairman of the country’s top financial regulator said.

According to the South Korean National Assembly’s National Policy Committee, the authority currently working towards crypto regulation, the need to analyze so many crypto coins is for the regulation of crypto businesses and the protection of investors.

Local report has it that the country’s top financial regulator, the Financial Services Commission (FSC), Eun Sung-soo, is also preparing to regulate the crypto industry.

Sung-soo confirmed that banks providing real-name accounts for cryptocurrency exchanges will not be held fully accountable in the event of money laundering related to cryptocurrency transactions.

He noted that the current law in the country has it that only when banks suspect irregular transactions they are expected to report to the Korea Financial Intelligence Unit. If they don’t, fines will be imposed on them for failing to fulfill their duty.

Binance, other exchanges must be under crypto regulators

The regulatory boss was asked if Binance would need a license to operate in the country in the wake of much criticism the firm has experienced.

He answered that all cryptocurrency exchanges, both foreign and domestic, must report to the Korea Financial Intelligence Unit.

Binance exchange has been under strict regulatory watch globally as UK, Cayman Islands, Thailand, Japan, among others, have alleged the number one crypto exchange of operating illegally.

Stiff crypto regulation – Crypto firms threaten to sue South Korea

Cryptopolitan reported recently how exchange firms in Korea are about to revolt and sue the government to court over stiff and unfavorable regulations which they have been subjected to comply with.

The regulation causing the stir of a lawsuit is the one that will require them to have a real-name account at a local bank by September.

It appears that regulation would push too many smaller trading platforms out of business, so they are opting to file a lawsuit.

Muhaimin Olowoporoku

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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