Saturday, 24 February, 2018

New cryptocurrency rules just came into effect in South Korea

WeMakePrice may accept bitcoin payments New cryptocurrency rules just came into effect in South Korea
Nellie Chapman | 31 January, 2018, 14:49

There was no significant driver behind the widespread drop late Tuesday morning. such as bans on anonymous trading accounts, had been implemented.

The U.S. Commodity Futures Trading Commission sent subpoenas on December 6 to cryptocurrency trading venue Bitfinex and Tether, a company that issues a widely traded coin it claims to be pegged to the dollar, according to a person familiar with the matter who asked not to be identified discussing private information.

In response to a question from a lawmaker on the government's plans for regulation of the cryptocurrency industry, Kim Dong-yeon said, "there is no intention to ban or suppress cryptocurrency [market]".

'Regulating exchanges is (the government)'s immediate task, ' Kim said. The new cryptocurrency rules are expected to bring better legitimacy to the cryptocurrency market and trade procedures.

South Korea has been at the forefront of pushing for broad regulatory oversight of cryptocurrency trading as many locals, including students and housewives, jumped into a frenzied market despite warnings from policy makers around the world of a bubble.

The apparent lenience towards teh crypto markets is also a surprise given that Seoul also announced the discovery of illegal crypto trades to the value of $600 million. Officials later clarified that an outright ban is only one of the steps being considered, and a final decision was yet to be made.

In one case, an illegal FX agency collected a total of 1.7 billion won ($1.59 million) from local residents in a form of "electric wallet" coins to transfer it to a partner agent overseas.

The South Korea's Financial Services Commission confirmed that the new rules, which were drawn out earlier, have been implemented.

A document was published on 23 January in which it was stated by the regulator that from January 30, it shall allow cryptocurrency trade to take place from real-name bank accounts.

The South Korea government is investigating the use of cryptocurrency in illegal foreign currency exchange, according to a statement.

Bitcoin stood at $10,123.13 as of 0842 GMT on the Luxembourg-based Bitstamp exchange.

Regulation and risks within the space have come back under the spotlight after some $530 million worth of virtual money was stolen from Japanese exchange Coincheck.