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South Korea On A Move To Bring Stringent Cryptocurrency Laws

South Korea On A Move To Bring Stringent Cryptocurrency Laws

South Korea is planning to introduce stricter regulation and monitoring of all the virtual currencies. The country held a special meeting of digital currency task force, which is composed of the Central Bank, financial regulators and cryptocurrency companies, in early September 2017.

The meeting was aimed to strengthen; the user authentication procedures at the currency exchanges and the suspicious transaction reporting systems used at the banks for any trade related to virtual currencies.

Kim Yong-beom, Financial Services Commission (FSC) and task force chairperson, didn’t acknowledge cryptocurrency either as money, currency or financial products.

The meeting also saw discussions on the possible bans of ICO fundraising platforms as they violate the Capital Market Act. According to the law, it is illegal to raise funds through stock issuance using crypto currency.

According to an FSC official, they are planning to expand the provisions of the Act on fundraising.

The need to control the weak cyber security practices in the country was also brought up in the meeting, as this has led to significant customer data breaches and thefts incidents at major Bitcoin exchanges.

South Korean authorities are also looking regulate framework for crypto currencies. The move may legalise and regulate virtual currencies like Bitcoin and Ethereum in the country.