South Korea plans cryptocurrency exchange licensing system that is similar to this of New York’s BitLicense system. The local news media also outlines that the South Korean officials are expecting more stability in terms of cryptocurrency prices.
14 February, AtoZForex – South Korean officials are planning to adopt an approval system for cryptocurrency exchanges similar to the New York’s BitLicense system.
South Korea Plans Cryptocurrency Exchange Licensing System
According to the local media reports, it is unlikely that the final decision will arrive until the Jun 2018 elections in South Korea. The authorities are considering the approval system as a part of a digital currency taskforce job. The local reports have been quoting the government official stating:
“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 [against that] of the State of New York that gives a selective permission.”
BitLicense is a specific license that allows operating a digital currency exchange. This license is granted by the New York State Department of Financial Services and has been existing since August 2015. In fact, Japan has had a similar licensing program for the cryptocurrency exchanges.
In Japan, the Financial Services Agency (FSA) has been responsible for approval of the license for cryptocurrency exchanges. In order to obtain a digital exchange license in Japan, an entity needs to meet a strict set of requirements, which covers a broad range of points from customer accounts to computer systems.
National Cryptocurrency Regulation Petition
Now, as South Korea has considered an exchange approval system, the cryptocurrency markets have appeared less volatile and “overheated.” The local news media also outlines that the South Korean officials are expecting more stability in terms of cryptocurrency prices.
South Korean media reports have quoted a government official as saying:
“Some even say that the government should impose taxes instead of putting additional regulations if the market volatility remains same at the current level. We will hold a meeting to respond to [the] national petition related to digital currencies this month but we are highly likely to make up for the defects of existing measures only at the meeting.”
The petition is calling for less regulation on cryptocurrency in the country. It has already received more than 200,000 signatures from the public back in January 2018.
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