Korean Government Answers Petition Against Unfair Cryptocurrency Regulations

Korean Government Answers Petition Against Unfair Cryptocurrency Regulations

The South Korean government has officially responded to the popular petition, with over 20,000 signers, against unfair cryptocurrency regulations. The regulators defended their crypto measures and outlined additional regulatory plans.

Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies

Popular Petition Answered

South Korea has answered the petition entitled “Has the government ever dreamed a happy dream for the people?” Filed on December 28, the one-month petition asks the government to avoid excessive regulations for cryptocurrencies in the country and “not make unfair regulations on virtual currency investment.”

According to the rules set by the Blue House, the government will respond to any petition with over 200,000 signatures within a month. On January 16, the above petition surpassed that threshold, as news.Bitcoin.com previously reported. By January 27, a total of 228,295 people had signed and the government subsequently responded to it on Wednesday.

Korean Government Answers Petition Against Unfair Cryptocurrency Regulations
“Has the government ever dreamed a happy dream for the people?” petition which ended on January 27.

Hong Nam-ki, Minister of the Office for Government Policy Coordination (OPC) said in his response:

It is the basic policy of the government to prevent illegal acts and uncertainties in the process of virtual currency transactions, and actively nurture blockchain technology…Transparency of virtual currency transactions within the framework of the current law is a top priority…We have been attentive and careful, keeping an open eye on market conditions, international trends, and all means”

Government Still Divided on Regulations

Korean Government Answers Petition Against Unfair Cryptocurrency Regulations
Hong Nam-ki.

The Korean government started announcing regulatory measures for cryptocurrencies in the middle of December. Since then, the regulators have considered a wide range of measures to curb speculation of the crypto market. They implemented the real-name system on January 30, ending anonymous crypto trading via virtual accounts.

The most extreme measures have been proposed by the Korean Ministry of Justice, including an outright ban on cryptocurrency trading and closing down crypto exchanges. However, other financial regulators in the country did not support these proposals. Last week, the Korean prime minister stated that closing down crypto exchanges is not a serious consideration.

Hong was quoted by Reuters on Wednesday:

The government is still divided with many opinions ranging from an outright ban on cryptocurrency trading to bringing the institutions that handle the currency into the system.

In addition, he explained that the regulators will “develop ways to tax virtual currencies, led by the finance ministry, and should announce measures within the first half of the year to develop the blockchain industry.”

What do you think of the South Korean Government’s response to the petition? Let us know in the comments section below.


Images courtesy of Shutterstock and the Korean government.


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South Korea Considers Bitlicense-Style System for Cryptocurrency Exchanges

South Korea Considers Bitlicense-Style System for Cryptocurrency Exchanges

The South Korean government is considering introducing an approval system for cryptocurrency exchanges based on the Bitlicense model, developed by the New York State Department of Financial Services.

Also read: Japan Cracks Down on Foreign ICO Agency Operating Without License

Bitlicense Comes to Korea

The South Korean regulators are considering introducing an approval system for cryptocurrency exchanges, Business Korea reported. An official participating in the government’s virtual currency task force, which has been discussing the matter, revealed on Monday:

We are positively considering the adoption of an exchange approval system as the additional regulation on cryptocurrencies. We are most likely to benchmark the model of the State of New York that gives a selective permission.

South Korea Considers Bitlicense-Style System for Cryptocurrency ExchangesThe State of New York allows exchanges to trade cryptocurrencies only when they have obtained a charter or a license, known as Bitlicense, from the New York State Department of Financial Services (NYSDFS). Its restrictive controls and capital requirements have led to only 6 firms being approved so far. Circle Internet Financial, XRP II, Coinbase Inc, and Bitflyer USA have received Bitlicenses, while charters were granted to Gemini Trust Company and Itbit Trust Company.

South Korea Considers Bitlicense-Style System for Cryptocurrency Exchanges“When the country accepts the model from New York, it will be able to bring cryptocurrencies into the institutional system as well as supervise the market in an orderly manner, according to the government,” the news outlet conveyed. While emphasizing that the final decision will likely be made after local elections in June, the publication asserted:

The Ministry of Strategy and Finance is aggressively planning to adopt the exchange approval systems.

At the end of January, the NYDFS requested cryptocurrency trading data from the South Korean regulators after two agencies conducted inspections of 6 major South Korean banks.

No Need for Extreme Measures

The South Korean government began announcing regulatory measures for cryptocurrencies in the middle of December. On December 15, bitcoin was trading at over 20.2 million won (~USD$18,500), according to data from one of the country’s largest cryptocurrency exchanges by volume, Bithumb.

South Korea Considers Bitlicense-Style System for Cryptocurrency Exchanges

In an effort to curb speculation, the Korean government considered extreme measures including an outright ban of crypto trading and closing down crypto exchanges.

With the price of bitcoin at approximately 9,747,000 won (~$8,967) at the time of this writing, the Korean regulators believe that “there is no need to use a hard-line policy, including a total ban on trading, as the speculation has subdued,” the news outlet noted.

Furthermore, the country’s prime minister confirmed last week at a National Assembly meeting that closing down cryptocurrency exchanges is “not a serious consideration.” Deputy Prime Minister and Minister of Strategy and Finance Kim Do-yeon also recently proclaimed:

We don’t need to get rid of or suppress digital currencies.

Do you think the Korean government will implement a Bitlicense-style set of regulations? What do you think it will do to the Korean crypto market? Let us know in the comments section below.


Images courtesy of Shutterstock, NYSDFS, and Bithumb.


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New Crypto Exchanges Launch in South Korea Despite Lack of Fiat Deposits

New Crypto Exchanges Launch in South Korea Despite Lack of Fiat Deposits

A number of new cryptocurrency exchanges are launching in South Korea despite being unable to provide full service due to regulatory challenges. Since the Korean government enforced the real-name system on cryptocurrency accounts, banks have only been providing fiat deposit services to the country’s four largest crypto exchanges.

Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies

Exchanges Undeterred by Regulations

New Crypto Exchanges Launch in South Korea Despite Lack of Fiat Deposits
South Korean regulator talking about the real-name system.

A number of new cryptocurrency exchanges are opening in South Korea despite regulatory uncertainty and the inability to accept fiat deposits. The challenge comes from the new system, enforced on January 30, which requires cryptocurrency traders to use real-name accounts to deposit money for trading at crypto exchanges.

While six major banks have the ability to service cryptocurrency accounts, they “have been converting only existing virtual accounts to real-name accounts for four large cryptocurrency exchanges” – Bithumb, Upbit, Coinone, and Korbit. The Investor elaborated:

The banks have also been refusing to issue new real-name accounts for other cryptocurrency exchanges, citing uncertainties and security concerns.

Zeniex

New Crypto Exchanges Launch in South Korea Despite Lack of Fiat Deposit ServiceNew crypto exchange Zeniex announced last week that it will begin service on February 12. The company explained that its launch “has been delayed by a month due to the latest regulations designed by the Korean government to cool the overheated cryptocurrency market,” the news outlet reported. Initially, the exchange will support bitcoin, bitcoin cash, ether, ethereum classic, litecoin, quantum, eos, bytom, and 0x.

Zeniex CEO Choi Kyung-joon was quoted detailing:

It’s currently difficult to provide our complete services due to delays in issuing real-name bank accounts for trading…Despite these circumstances, we have decided to go ahead with the launch to service our customers who have been waiting for our opening.

With the bank account problem, traders “can only buy and sell cryptocurrencies with bitcoins because major banks are putting off confirming and issuing real-name bank accounts,” the publication added.

Dexko

New Crypto Exchanges Launch in South Korea Despite Lack of Fiat Deposit ServiceAnother crypto exchange named Dexko announced on Friday that it will start accepting pre-registration of users with the aim to launch its cryptocurrency exchange on March 15, the Investor also reported. Initially, the exchange will support 10 cryptocurrencies including bitcoin, ether, bitcoin cash, litecoin, and ripple. Pre-registration runs from February 5 to 25, according to the company’s website.

The firm will exempt trading fees for a month for pre-registered users at launch, the news outlet detailed. Kim Yong-ho, the CEO of Korea Digital Exchange which operates the exchange, commented:

We worked hard to remove defects and minimize customer inconvenience by conducting in-depth analysis on other exchanges…Dexko has completed all the legal and systematic requirements and is preparing to introduce won-based trading soon.

Chinese Exchanges

Two Chinese exchanges are also planning to enter the South Korean market. Earlier this month, Okcoin reportedly reached a final investment agreement with South Korean game company NHN Entertainment Corp, which was previously part of Naver. “Under the agreement, Okcoin will provide its own trading system and NHN Entertainment will operate a domestic server and respond to customers,” Business Korea described. The company plans to trade more than 60 cryptocurrencies against the Korean won.

Huobi is also planning to enter the Korean market in the first quarter of this year, the publication noted. Before the Chinese government closed down all cryptocurrency trading last year, the two exchanges were among the very largest in the world as measured by volume.

What do you think of these new crypto exchanges launching in Korea? Let us know in the comments section below.


Images courtesy of Shutterstock, IHS, Zeniex, and Dexko.


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The post New Crypto Exchanges Launch in South Korea Despite Lack of Fiat Deposits appeared first on Bitcoin News.

Korean Prime Minister: Closing Down Crypto Exchanges ‘Not a Serious Consideration’

South Korean Prime Minister: Closing Down Crypto Exchanges 'Not A Serious Consideration'

The South Korean prime minister has emphasized that closing down cryptocurrency exchanges is not a serious consideration. His statement clears up any remaining confusion in the market regarding whether the Korean regulators are still considering this option.

Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies

Closing Down Exchanges Not Serious Consideration

South Korean Prime Minister: Closing Down Crypto Exchanges 'Not A Serious Consideration'
Lee Nak-yeon.

South Korea’s prime minister, Lee Nak-yeon, responded to questions from opposition parties on Tuesday regarding the government’s policies on cryptocurrencies at the National Assembly meeting, local media report.

“There has been a harsh criticism of the government for the confusion between the ministries around the virtual currency regulation direction,” Dailian reported. During the session, Lee was quoted by the Kyunghyang Shinmun saying:

The closing of [cryptocurrency] exchanges is not a serious consideration now. It is one of the many possibilities.

Besides legal considerations, Lee explained that closing down crypto exchanges “will take a lot of discussion, debate, and time,” adding that “I am thinking about how it will affect the market,” Edaily quoted him.

South Korean Prime Minister: Closing Down Crypto Exchanges 'Not A Serious Consideration'
The South Korean National Assembly. Ⓒ Daily Korean reporter.

Criticisms of Ministry of Justice’s Action

During the meeting, representative Chae Yi-bae of the People’s Party told the prime minister that since the minister of justice, Park Sang-ki, announced the closure of cryptocurrency exchanges, the position of each ministry has led to market turmoil, Dailian conveyed.

Parliament member Ha Tae-keung elaborated:

I understand the goodwill of the government regarding virtual currency, but the policy is too amateur…The government, which has to heal the pain of the people, has intensified the suffering.

South Korean Prime Minister: Closing Down Crypto Exchanges 'Not A Serious Consideration'
Park Sang-ki.

The remarks by Chae and Ha are in response to a statement made by the justice minister at a press conference on January 11, when he said, “We are preparing a bill to ban virtual currency exchanges…We also aim to close exchanges.”

The news immediately went viral, sinking the prices of cryptocurrencies before other Korean regulators could clarify that the announcement was solely the opinion of the justice minister. Park recently apologized for his action. “I apologize for the confusion,” he proclaimed regarding his statement of “closing virtual currency exchanges,” Maekyung reported.

Deputy Prime Minister and Minister of Strategy and Finance, Kim Dong-yeon, has recently clarified in a recent radio interview, as reported by Edaily, that “In the near future, a consistent and comprehensive position of the government will emerge in an appropriate and desirable form.”

What do you think of how the South Korean government handle crypto regulations? Let us know in the comments section below.


Images courtesy of Shutterstock, Dailian, and Yonhap.


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