South Korea set six operating conditions for crypto currency exchange

nRunaway Comment: Given South Korea’s encrypted currency trading volume has reached the world’s third, the South Korean government is urgently needed to speed up the pace of regulation of this emerging market. It is learned that the ROK authorities are prepared to amend a bill to limit the trading of cryptocurrencies (including bitcoin) to the six conditions that satisfy their own requirements and will consider tougher penalties for violating the rules. , Thereby giving full control over the cryptocurrency market.n
nTranslation: Inan
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Proposed actn
The South Korean government is preparing a bill amending the Act on Regulation of Similar Reception to include provisions dealing with crypto currency transactions. Article 1 of the act reads: “The purpose of this Act is to protect good traders and establish a sound financial order by regulating equal reception.”n
According to South Korean media “Money Today” reported:n
n”The government defines virtual currency transactions such as bitcoin as ‘equivalent to receiving behavior’ and will ban all such activities.”n
nAccording to the report, the definition of digital currency trading includes “storing, managing, acquiring, redeeming, trading, preparing, arbitrating and issuing virtual currencies”, covering all the business areas of the current exchange.n
Bithumb, Korea’s largest Bitcoin exchange, commented in an email to Reuters that “the right regulation will foster the virtual money market and we welcome its arrival,” pointing out that such regulation could provide legitimacy to the market.n
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Must meet six conditionsn
Given that regulators have come to recognize that a large number of cryptocurrencies are in the process of being traded locally, they have provisions that allow crypto-currency exchanges to operate legally. According to “Money Today” reports, regulators have set six conditions for this, a presidential decree will also put forward more conditions to be met.n
First, the customer’s funds must be kept separately. Second, the exchange must provide users with a complete explanation of the investment risks. Third, the exchange must confirm the user’s real name. In addition, they must also create credible money laundering systems that must have asset protection systems such as encryption key distribution. Finally, they must increase transparency by disclosing transaction details to the public.n
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increase the punlishment n
The report explained that regulators plan to include in the amendment “no one shall participate in equivalent currency transactions,” and other provisions, and pointed out that the bill will also be used to regulate the norms for raising funds, access to other cryptocurrencies, issuing loans, manipulating prices and more Level and home sales of cryptocurrencies distribution. In the meantime, ICO is still banned in South Korea.n
Under current law, a breach of the Equal Reception Act will be punishable by “a fine of not more than five years or a fine of not more than 50 million won,” and the bill to be passed will be more punitive and will be amended to read “10 years imprisonment or 500 million won fine. “n
The new bill that contains the above proposal will be submitted to the National Assembly soon. Money Today also states:n
n”Given the reality of the Exchange, the government is considering giving a six-month grace period after the law is enacted.”n

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