South Korea set up a cryptocurrency working group to lead the regulatory framework

nBankruptcy comment: According to media reports, on Monday, South Korea set up a new working group to regulate bitcoin and other cryptocurrency transactions, and the Ministry of Justice accepted the financial regulatory body responsible for the working group to develop and implement cryptocurrency regulation. In the meantime, the first meeting of the working group was held on Monday to re-evaluate trends in the cryptocurrency market at home and abroad as well as future measures. Officials of ministries and departments said at the meeting that the government has mainly formulated regulatory measures to protect consumer safety rather than to regulate crypto currency exchanges.n
nTranslation: Clovern
The South Korean government set up a new working group to regulate Bitcoin and other cryptocurrencies. The Ministry of Justice of South Korea is now taking over the financial regulatory body and is responsible for working with the working group in developing and implementing cryptocurrency regulation.n
Cryptocurrency Task Forcen
According to the Asia Times, this week, the South Korean government set up a “working group on virtual currency countermeasures,” and “promptly reviewed measures to strictly regulate virtual currency transactions.”n

This is the second working group set up by the government. The first working group was smaller and involved only financial regulators. Maekyung Media said that the group has also not set a regulatory framework for cryptocurrencies and has been inactive since September.n
The media added that in order to speed up regulation, “ministries agreed to jointly set government measures and strictly regulate virtual currency transactions under the supervision of the Ministry of Justice.” The first meeting of the new working group was also held on Monday and re-evaluated the domestic Trend of Cryptocurrency Market and Future Countermeasures.n
The news media wrote: “Relevant agencies are deeply concerned about the recent speculative transactions in the virtual currency and illegal currency activities in the virtual currency.” And citing government announcements said:n
n”We agree that the Ministry of Justice shall be the competent authority and all the ministries shall formulate and implement regulatory measures through consultation.”n
South Korea cryptocurrency legal statusn

Although there is currently no law protecting cryptocurrencies in South Korea, the government is actively discussing the legal framework for cryptocurrencies. The Korea Times quoted the ministries as saying:n
n”Virtual currency can not be considered a financial product or currency, and although virtual currency trading is said to be secure, it is called a future currency, but blockchain technology can only guarantee the security of a transaction without guaranteeing its value.”n
nTo protect investors, the government is enacting regulations to ensure that encrypted currency exchanges meet certain requirements. For example, an exchange must deposit its client investment into a bank or other reputable institution and inform the client of the investment risk in detail. In addition, the media explained in detail that the level of penalties for multi-level crimes involving digital currency transactions will also be greatly increased.n
Finance Minister at the meeting, said: “We will develop to protect investors regulatory measures, rather than to develop a regulatory framework for virtual currency exchange.”n

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