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Amidst Japanese exchange hack, South Korea introduces fresh rules for cryptocurrencies

Jan 31, 2018 Posted /  5119 Views

Amidst Japanese exchange hack, South Korea introduces fresh rules for cryptocurrencies

South Korea had been one nation that has constantly been in the spotlight since last month. There were rumours that the country might ban digital currency exchanges, which lead to steep fall in the price of various currencies. Now the country has come up with a fresh set of rules pertaining to cryptocurrencies which will take effect from Tuesday itself. These laws aim at managing anonymity with money laundering. Additionally, these rules are also being viewed in the positive light and one that would provide for the longevity and sustenance of cryptocurrencies amidst of the speculation issues.

New rules being outlined

The information regarding the implementation of new regulations was confirmed by Financial Service Commission of South Korea earlier this month. Nonetheless, a spokesperson from the agency explained that it was too soon to tell about the impact of these regulations. The spokesperson from the regulatory agency said on January 23  that they would permit trade in cryptocurrencies from virtual bank accounts beginning from today itself.

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However, the new rules permitted the banks to meet some criterion before issuance of virtual accounts that include "Know your client" and many Money-laundering necessities. The new rules will make certain that cryptocurrencies or digital assets are not utilized for any illicit activities such as tax evasion, money laundering and cyber frauds. All this was stated in the document provided by FSC, which focused on curbing the web frauds and crimes.

Faith Restored

The new rules support the markets and now the market forces seem more confident than ever after the issuance and implementation of fresh rules. This was steered by the statement of Bithumb's representative who on Tuesday stated that the digital currency exchange has started with the real-time identification service. The exchange explained that its Monday operations went fine and they will not manoeuvre any terms with respect to coin transactions.

Many exchange participants had suggested that these steps by FSC are actually good on a long-term basis. Startup firm, TenX president and co-founder, Julian Hosp, observed that it was due to the initiation of the clamping on anonymity, as well as, illegal cases that some digital currencies might have witnessed these changes.

Finding more measures and greater legitimacy

Many domestic experts believe that the new rules will facilitate for greater legitimacy and more legal measures. They indicated that the rules will permit the exchange to comprehend their client and find if their clients are not indulging in anything that is illegal. Bitcoin trade in Korean Won sustained roughly four percent compared to 40 percent of total bitcoin traded in the Japanese currency.

Notwithstanding this, the new regulations could concede a widespread market impact. Hosp exposed that despite Korea’s national scale, it could have a notable impact. The regulators around the globe have become careful after hackers tampered the digital currency platform. On Friday last too, Japan testified about $530 million worth of digital currency being lifted by hackers.

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Tags: Japanese exchange hack South Korea Cryptocurrencies

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