South Korea is developing a project to regulate the cryptocurrency market

South Korea is developing a project to regulate the cryptocurrency market

Information about a possible ban on cryptocurrency trading in South Korea was false. In fact, the government remains very optimistic about deals with bitcoins, because it attracts digital business and international investors to the country.

To establish the most mutually beneficial relations between state structures and owners of innovative currency, a unique bill is being elaborated, which will become the normative base for cryptocurrency exchanges and brokerage companies.

The reason for spreading rumors about the ban on trading operations with bitcoin was the statement of the head of the South Korean financial service that ‘until bitcoin is recognized as a legitimate currency, this is not about its legitimate use’.

Such forceful statements made the analysts admit the likelihood that South Korea will establish a complete ban on cryptocurrency transactions, as it was earlier with the participation of companies in ICO.

The lawyers of Law&Trust International provide full support for ICOprojects and will help to select the most favourable jurisdiction with a minimum of commercial and legal risks for these purposes.

The Deputy Prime Minister reported on the active development of methods to protect investors in bitcoins and their assets, as well as new aspects of anti-money laundering (AML) policies.

In order not to provoke the migration of investment funds to OTC platforms (not regulated), the government does not intend to deal with the key mechanisms of the cryptocurrency market.

Perspectives for the development of the cryptocurrency market in South Korea

The Ministry of Finance announced the launch of the project to develop regulatory rules for the exchange of bitcoins last week.

It is likely that a strategy will be developed to prevent the centralization of trading volumes on several exchanges.

It was also stressed that tax reforms regarding bitcoins will not be approved.

South Korea can grow into a larger market of bitcoin

The largest South Korean bank Shinhan announced its readiness to work with bitcoin. A new service called "Bitcoin-wallet" and storage facility have already been developed and tested.

The representative of Shinhan explained that the bank intends to create a secure insured platform on which clients of South Korean Burmese exchanges will be able to keep their funds. This platform is extremely in demand, especially against the backdrop of the last 2 hacking of the largest South Korean exchange Bithumb.

To date, 7% of the world share of bitcoin is accounted for by the stock markets of South Korea. As the powerful financial institutions are integrated into the cryptocurrency market, bitcoin will attract more and more investors and consumers.

It can be assumed that the development of the regulatory framework for the cryptocurrency market is only the first step in the restructuring of the country's economy. The next stage may be a permission to conduct ICO for a certain category of companies.

In order not to make a guess, please contact Law&Trust International for receiving complete and up-to-date information on the regulation of cryptocurrencies in South Korea.