The South Korean financial services Commission (FSC) urged the legislative bodies to accelerate the adoption of the country’s first law on cryptocurrencies.
Local media report that representatives of the Supervisory authority are seriously concerned about the risks caused by the lack of a reliable regulation of the cryptocurrency sphere. The head of group on digital currencies FSC Hong Seung-Ki (Hong Seong-ki) reminded the authorities about the danger of money laundering occurring as a result of uncontrolled local kryptomere. In his opinion, the cryptocurrency market is developing too fast, and trading platforms are not properly prepared for such growth, which leads to security issues and cyber attacks.
“We are trying to legislate important procedure for preventing money laundering (AML) and the protection of investors. The law should be released as soon as possible,” added Seung-Ki.
Recall that in may, the Commission joined the test of the cryptocurrency exchanges on the compliance with AML procedures, which gave financial Supervisory Service of Korea (FSS). The impetus for the adoption of measures in this area for Korean regulators was likely the recent high-profile hacks of cripture. So, in June, hackers attacked Coinrail, stealing $37 million, and a week later, one of the largest stock exchanges of the country Bithumb, stealing money in the amount of $31 million.
Under the bill, which the ruling party of South Korea, introduced in March, the activities of all cryptocurrency exchanges will monitor the FSC. But the National Assembly is in no hurry to approve the bill, which are delayed. Seung-Ki said that the adoption of the law will not mean official approval of the authorities of cryptocurrency trading. It only allows the supervisor to more effectively track stock transactions.
It should be noted that the development of the bill of cryptocurrency is not the only measure taken by the government of South Korea. At the end of may, the special Committee of the fourth industrial revolution, the National Assembly has proposed to allow the ICO in the country, but with more stringent regulation than it was before the ban.
In addition, three Korean ministries are now working on the final draft of the classification system for the blockchain industry. The document must be submitted by the end of this month. It is expected that the project will review the status of cryptocurrency exchanges and define them as regulated financial institutions. Until such platforms are classified as “providers of communication services.”
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