South Korea intensifies Cooperation activities with China and Japan for Crypto-Regulations
Jan 09, 2018 Posted / 1528 Views
In recent days, news about South Korean regulations have floated in the media and everyone is following the steps being taken by the official authorities in Korean country. Even the South Korean exchanges are demonstrating full cooperation. However, now the country’s regulating officials are looking for support from their counterparts in Beijing and Tokyo to tackle cryptocurrency speculation.
Recently, Seoul authorities scrutinizing the crypto trading space targeted six commercial banks. The Southern side of Korea wants to share their experience and is working to formulate a possible trilateral approach to regulation.
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The Financial Services Commission of South Korea is working on the lines to intensify the cooperation activities with agencies from China and Japan in restriction of speculative transactions. Recently, FSC’s chairman Choi Jong-Ku told during a press conference that the Deputy finance ministers from most of the Asian countries have exchanged ideas for the regulation.
In this course, Seoul plans to set up an elaborate system of cooperation with Asian countries especially Beijing and Tokyo, Choi said, as quoted by Yonhap News Agency. In a media briefing, it was told by the country’s top financial regulator that the bank inspection that will run through this Thursday with the contribution from the Korean Financial Intelligence Unit. The officials, however, warned against what was termed as an “irrational trend” of investing in cryptocurrencies, taking into account the “ongoing fever of speculative investment”.
Choi’s has exclaimed that cryptocurrencies will not be able to play a role as a means of payment. In fact, he was quite straightforward with the phrase that “A virtual currency only triggers side effects.” The regulator gave a worrying opinion to the media that these kinds of currencies can increase fraud, illegal fundraising, hacking, speculation and manipulation of market prices, as he lists out different issues in his long tale.
One report by Korean Herald specifies that the government official has left the door ajar for the shutting down of all cryptocurrency related businesses to diminish the above-listed problems. Choi Jong-Ku remarked that the world was facing a “policy challenge pandemic” and in addition stated that Korea’s “trial-and-error” experience can mould the trilateral efforts to positively impinge the regulations.
South Korea’s financial regulators are at present conducting assessment in six of the country’s largest commercial banks, including Woori, Kookmin and Shinhan. The financial accounts of cryptocurrency traders have been under fire. Last month authorities published notices to banks for non-issuing of the “virtual accounts” used by cryptocurrency exchanges to monitor their clients’ money. In fact, the mandates announced that under the new system anonymous trading will end and by the end of January real name identity verification on traders is to be implemented.
There was yet another warning issued by the head of the FSC in the same respect: “Virtual currency transactions are highly susceptible to money laundering”, because of the anonymity that is maintained. Choi Jong-Ku requested the banks to act as “gatekeepers” and said that they need to deeply monitor all the crypto-related transactions. He shared that he is worried that these gatekeepers had remained quiet about money flows for illegal uses. The ongoing investigation is complying with the new requirements of law and is supposed to determine if the banks have found money laundering and non-real-name transactions.
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