After the U.S. and Japan, South Korea and Dubai also began bitcoin regulatory
After the United States and Japan set up the regulatory legal framework, South Korea is also towards this direction, it is now set up a legal framework for regulation of bitcoin and its use.
South Korea’s financial regulator “Financial Services Committee announced on November 17, 2016 that it will launch the regulatory guide digital currency transactions in the first quarter of 2017, in order to deal with South Korea’s growing and other digital currency bitcoin online trade.
The Committee noted that, compared with last year, the average monthly number of currency transactions in 2016 increased by 6 percentage points. The three largest exchange Korea between October 2016 and processing transactions in January 2015 reached 1 trillion and 500 billion won (about $1 billion 300 million).
Although the South Korean Ministry of science and technology, ICT and FuturePlanning recently bitcoin registration operation carried out supervision, they do not provide financial regulatory guidelines but, therefore the Financial Services Commission set up a special working group to discuss the regulatory status of digital currency exchange and create the licensing rules.
A local publication TradeArabia also reported that Dubai’s top legislative committee (SLC) of the same legislative measures. It is said that Dubai will be held in November 20, 2016 at a seminar to discuss bitcoin now future legislative policy and legislative framework.
Dubai’s top Legislative Council Secretary General AhmadbinMesharAlMuhairi said, taking into account the bitcoin and other traditional currency bitcoin — lack of control from the central regulatory agency, therefore need to spread the security and privacy features it has a high level in the virtual world.
The importance of supervision
South Korea Committee said bitcoin is often used for drug trafficking, money laundering, tax related crime, now the implementation of supervision can not only prevent the illegal use of digital currency, but also promote the development of bitcoin, because the implementation of supervision can establish the legitimacy of bitcoin in the eyes of the public.
The implementation of supervision can help to gain public trust, encourage new user registration, of which Japan is a good example, Japan in May through the regulatory bill, then bitcoin trading volume in the 6 months rose rapidly. The Mt.Gox scandal has discredited the bitcoin in Japan, but the implementation of regulatory measures to make bitcoin again in Japanese public confidence. Today, Japan has become the world after the China second bitcoin trading market.
The regulatory framework will be launched to accept bitcoin purchase conditions. The Swiss Parliament began bitcoin regulatory and to block the chain based start-up company in June. Earlier, the Swiss town of Zug had begun to accept bitcoin payments of a social service. Today, Switzerland allows users to buy train tickets using bitcoin, bitcoin has also stopped selling the country reported in switzerland.