South Korea to regulate crypto-exchanges

The South Korean lawmakers voted an amendment to impose rules for cryptocurrency exchange platforms local. This new regulation should help legitimize and develop this already sprawling industry in South Korea.

The National Assembly of the Republic of Korea adopted a amendment which plans to regulate digital asset service providers (VASPs) to fight money laundering and terrorist financing more effectively, reports TechCrunch.

Its adoption and its presumed signature by the South Korean President Moon Jae-in should take place by the end of the month, allowing startups to prepare for the new measures.

All VASPs will now have to register with the regulator and work with a one and only bank for deposits and withdrawals on their platform.

[C’est] very significant because it will clarify several aspects of the cryptomonnaie. This will lay the groundwork for institutional actors and investors to become more actively involved in the crypto space, "said Steve Lee, partner at BlockTower Capital.

The South Korea has been at the forefront of the rise of cryptocurrencies and technologies blockchain. This new law would legitimize the sector, which has more than 70 crypto exchanges, and further protect the many investors.

Last summer, we learned that between 2017 and 2019, the financial damage caused by crypto-crimes had exceeded the 2 billion euro mark in the small country of East Asia.

More recently, the 4th Industrial Revolution Commission, a South Korean public body that coordinates important political issues, suggested that the government rate Bitcoin on the Korea Exchange.