South Korea Could Ease Cryptocurrency Regulations with Its New FSS Governor –
South Korea is one of the countries where virtual currency regulations implemented were very hard. Indeed, ICOs were totally banned and traders have to provide a lot of information about themselves. But, that may change in the near future. The new governor of the Financial Supervisory Service (FSS), Yoon Suk-heun, could ease crypto regulations in the country.
South Korea Crypto Regulations Could Be Reduced
Good news for South Korean and crypto investors, the FSS could reduce crypto regulations in the near future.
According to the Korea Times, Mr. Yoon told reporters that there are some positive aspects regarding virtual currencies.
Yook Suk-heun, said:
“The FSS will collaborate with the FSC when an inspection on policies and financial institutions has different configurations associated with different scopes. The FSC inspects policies, while the FSS examines and supervises financial institutions but with the oversight of the FSC.”
At the beginning of the year, the FSC decided to ban anonymous traders operating in the country. The intention was to reduce speculative investors in the virtual currency market. Moreover, the country imposed strict Know Your Customer (KYC) and Anti Money Laundering (AML) policies.
Once these regulations started to be effective, trading activities slowed down dramatically. Some cryptocurrency exchanges and associations claimed that a clear regulatory framework was welcomed. Investors need to be protected in a very unregulated market in which scams were able to operate.
A representative of Upbit, one of the most important cryptocurrency exchanges in South Korea, commented about that:
“We don’t oppose regulations. But you can’t entirely kill the markets by simply imposing regulations. What the new FSS chief should think is how the regulators should provide remedies to help crypto trading and blockchain technology better.”
Indeed, blockchain technology and virtual currencies are growing all over the world and are proving to be very useful tools in many different industries and aspects of the economy. Some ICOs in South Korea, and crypto related businesses, decided to move their operations to other countries in the region. Hong Kong and Singapore are other placer were crypto regulations are softer and enterprises can build their services or products.
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