South Korea Creating New Regulations On Cryptocurrency Through A Gradual Shift

This speculative legislations can be very dangerous for retail investors in particular, as they are most likely to be the victims of irregularities of cryptocurrency exchanges

Being one of the G20 economy nations, South Korea is being guided by certain ideals, and it is online with these ideals that South Korea is working to fashion out regulations that will govern the activities of cryptocurrency and it’s transactions in the country. However, unlike many nations of the globe that are beginning to tighten up regulations, South Korea looks to better enhance its economy by ensuring the best and most flexible regulations are created which is being referred to as unified regulatory by G20.

With an existing guideline governing the activities of cryptocurrency in the country already, two major financial bodies – Financial Supervisory Service and Financial Service Commission have had to revise regulations as it regards the operation of cryptocurrencies and cryptocurrency exchanges.

The Aim Of The Regulations

While the government is doing everything possible to ensure that it supports and facilitates the growth of cryptocurrency in the country, it is also ensuring that all hands are on deck and possible restrictions through appropriate regulations are being made to check money laundering and any other fraudulent act in the cryptocurrency ecosystem. To do this, South Korean’s financial regulatory body is not just establishing these unified rules, but it is also doing everything it can to gain cooperation from other G20 nations and other countries of the globe at large.

Problems Faced By The South Korean Regulators

The major problem that is currently being faced by both the Financial Supervisory Service and the Financial Service Commission is the difficulty of classification. While it is difficult to value them as financial assets, classifying them as non financial products has also not been an easy tasks, and this is largely due to the general speculations that characterizes the cryptocurrency world as a whole.

Also with several cryptocurrency exchanges beginning to put in place strategies to facilitate their growth, more banks are beginning to lose trust and confidence in digital currencies and as such these banks are not getting carried away by the huge profit margin digital assets attracts.

With the growing increase of regulations to curb the activities of cryptocurrencies across the globe, it would be noticed that that only small nations have been direct as to their regulations, leaving the major countries with speculative legislations.

This speculative legislations can be very dangerous for retail investors in particular, as they are most likely to be the victims of irregularities of cryptocurrency exchanges. This is why in a bit to stand out and take the lead among major countries, South Korea is working at it gradually and not just putting up a radical switch.

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