South Korea, like most of the world, is finally embracing the idea that digital currencies and bitcoin are here to stay. This has seen to it that key financial stakeholders in South Korean take the next logical step towards making sure that there is no harm comes from the use of digital currencies and bitcoin in the country. Financial regulators in the country, who included the Financial Services Commission (FSC), the country’s central bank i.e. the Bank of Korea, the Ministry of Strategy and Finance and the Financial Supervisory Service, formed a task force whose core function was to come up with the requisite regulations to streamline the use of bitcoin and other digital currencies in the country.
According to the regional publication, Korea Joongang Daily, the task force held its first meeting last week where it agreed that the digital currency sector needed to be regulated. Without any form of regulation, the Ministry of Science, ICT, and Future Planning currently oversees the registration of bitcoin exchanges. This procedure is however likely to change by the first quarter of 2017.
Indeed, the task force notes that there was probably going to be a lot of work ahead. However, they note that they are going to refer out the existing legal framework. Furthermore, they have already been put in place in the United States and Japan as a guide. Ultimately, this guide forms the country’s very own digital currency regulatory structures. Having said that, the task force was going to particularly focus on New York State’s BitLicense. Also, they focus on a recent bill. Recently, this bill passes throw Japan’s legislature. As a result, it regulates bitcoin exchanges. Indeed, Mr. Yim Jong-yong is FSC’s chairman. Furthermore, the first make available the first bitcoin regulation templates in a speech he made last month. Furthermore, this is where he said that the government commits to streamlining digital currency to current global trends in countries. For example, The United States of America and Japan.
Indeed, South Korea has already made major strides in the adoption of digital currency. According to FSC, a total of 1.5 trillion won is about $1.3 billion. However, in transactions, the process between the top three Bitcoin exchanges alone. FSC further noted that there was a general 6% average monthly increase in bitcoin transactions as compared to the previous year.
Regulation of digital currency in the country will see to it that it is not used for any harmful activities such as money laundering and tax-related crimes and drug trafficking. Digital currency regulation coincides with developments within South Korea’s fintech scene were where companies such as Korea Exchange and Shinhan Bank have adopted the use of digital currency technologies to provide services.