New Laws for Cryptocurrency in South Korean Begin to Take Shape
Political parties in South Korean are revisiting the laws for their cryptocurrency industry. The new bills are expected to play a higher role in regulating cryptocurrency and blockchain systems in South Korea after two key exchanges in the country were hacked.
New crypto framework
The government is expected to usher in new laws which will bring about a bigger regulatory keep up of cryptocurrencies and the trading environment. The current development as of now is that political parties in the country will propose bills in front of the legislature in the next few weeks. These new bills will effectively build the necessary framework to ensure regulation of cryptocurrencies as well as blockchain systems, in the country.
The changes are aimed at eliminating circumstances which are conducive for hacking of cryptocurrency services in any exchange of South Korea. In the past months, the cryptocurrency exchanges – coinrail as well as bithumb – located in South Korea have been hacked. Hence, as the industry reels under the setback from these robberies, legislators cutting across party lines will introduce bills for higher standards of regulation of the industry. The bills will be proposed by the main opposition party in the country, Liberty Party Korea (LPK). It is seen that the lawmakers are at odds with each other, on the aspects of regulation.
In the months before the hacking, it was seen that the government wanted to encourage and develop a safe and secure environment for further trading. They have already introduced some KYC laws for account holders on trading platforms. The basic law changes that have come about in the first phase in January are aimed at curtailing anonymous trading. The new rules directed banks to permit only authorized bank account owners to trade at these exchanges. Unregistered accounts cannot continue their crypto trade, the laws concluded.
In the stages after these laws were introduced, the regulatory climate has been proactive and encouraged the currency users to bring about changes which will protect users and give them the range or the ability to make profits without encountering negative market circumstances.
As new market forces take shape, with the evolution and maturing of the bitcoin trading environment, it is seen that new laws are a necessary part of the setup.
However, lawmakers are themselves at loggerheads aligned with their political ideologies. The main opposition party in the country – the LPK, views cryptocurrency trading in a new light as against the ruling party perspective. Hence, the LPK has called for a public debate with the regulatory body for internet in South Korea – the Korean Internet and Security Agency (KISA), to identify concerns by the regulatory body and its users.
The focus would be on domestic issues in the exchanges located across the country. The input from the industry watchdog will clearly highlight the best ways to identify industry needs and to develop the industry further. The government organization has been an active regulator in cryptocurrency trading practices in South Korea, apart from its traditional role as a cybersecurity organization which supervises internet activities as well.