South Korea will legitimize Bitcoin and Taitong currency, hedging the risk of bubble outbreaks

nnnThe South Korean ruling party has announced that it is revising the relevant bill, plans to legalize the currency and the currency and the inclusion of it in the regulatory scope, so as to better protect the dealer, hedge the risk of bubble outbreak. In fact, most of Korea’s currency trading platform is relatively prudent to prevent conflicts with national regulations, but a clear legal basis will further standardize the local digital currency trading market, may promote the emergence of a new situation in the transaction.n
nnTranslated by: Inan
nOn July 3, South Korea’s ruling party, Park Yong-Jin, announced that it would announce a revision of the regulatory framework for digital currencies such as Bitcoin in the coming months.n
nPark drafted and revised three bills, which focused on legitimizing Bitcoin and Taitong. According to news from the Korea Herald, Park stressed the need to protect South Korean users, traders and investors from potential risks and the outbreak of digital currency bubbles.n
nStep 1 – Revision of the Electronic Finance Transactions Actn
nThe first step taken by Park and his team in legalizing Bitcoin and the currency is to revise the Electronic Financial Transactions Act, which will require businesses and companies involved in digital money, such as trading platforms and Bitcoin exchanges , Holding at least $ 436,000 in capital and implementing strict KYC and AML systems.n
nThis requirement is not a problem for most South Korean dollar and digital currency exchanges, as they support South Korea’s multi-billion dollar large companies and global venture capital firms.n
nKorbit is South Korea’s second largest digital currency trading platform, supporting Bitcoin, ETH, ETC and Swiss currency transactions, supported by South Korea’s $ 19.2 billion largest communications company SKT and SoftBank Ventures Korea.n
nBithumb is Korea’s largest platform for Bitcoin, operated by a publicly traded company known as BTC Korea, and is currently seeking to raise capital through the increase in capital paid by the Korea Stock Exchange. Bithumb has processed more than $ 750 million in bitter currency, ETH, Darwin, Lehman, ETC and Swiss currency transactions at peak times to consolidate its position as the largest trading platform in Korea.n
nThere is no legal basisn
nAccording to Park and the South Korean Financial Supervisory Service, Brayumb, Korbit and Coinone, the three largest foreign currency trading platforms in Korea, have controlled nearly 100% of the South Korean currency market but have no legal basis Then
nAs a result, the three exchanges and other small trading platforms will be authorized and regulated by the Korea Financial Supervisory Authority, which will require at least $ 436,000 in capital.n
nMore importantly, the government’s new KYC and AML requirements may not be a problem for most existing business and trading platforms, since most exchanges have been integrated with strict KYC and AML systems since their inception. Korbit, Bithumb and Coinplug platforms have been known for their rigorous verification process to avoid conflicts with Korean regulations.n
nKim Kyung-hwan, a lawyer for Minwho of the Korean law firm, explained in an interview with the Korean Herald that the regulation and legalization of Bitcoin and virtual currency would ensure that traders and businesses were operating within the legal context and would not work with existing finance Regulations conflict.n
nKyung-hwan said:n
nn”User protection, tax evasion and money laundering have been a problem in digital currency trading, and digital money traders often find themselves in trouble because they have gone beyond the legal boundaries.”n

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