South Korea Close to Finishing Regulatory Drafts for Bitcoin Exchanges

South Korea

Anyone interested in Bitcoin should be aware of the fact that authorities in South Korea are close to finalizing regulations for Bitcoin exchanges.

South Korea’s financial regulator, The Financial Services Commission (FSC), is working on various regulations that will instruct the exchanges to follow the rules.

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This shouldn’t come as a total surprise considering the FSC announced to the public in 2016 its intent to introduce regulations for Bitcoin exchanges. Fast forward six months later, and the plan is left in limbo.

As 2017 approaches the end of its life, the regulator is reportedly close to finalizing final regulatory drafts, according to Hankyoreh, a regional news daily. According to the report, regulations for Bitcoin exchanges will “treat the operation of cryptocurrency exchanges (such as Bithumb, Coinone, and Korbit) as unauthorized fundraising.”

Here’s what the FSC had to say:

“Cryptocurrency exchanges will be required to maintain standards for consumer protection, such as having separate deposits for customers’ assets, and for increasing transparency, such as having a procedure for confirming customer’s’ identity. The authorities will also be empowered to prosecute exchanges that break these rules.”

Additionally, the new regulations will stop the abuse of digital currencies from criminals, as it is a known tool for money laundering.

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