South Korea regulator flags improved understanding for cryptocurrency industry

SEOUL (Reuters) – A better understanding for South Korea’s cryptocurrency attention might be in the offing as the marketplace regulator changes hook from a tough position on the practical silver trade, earnest instead to assistance foster blockchain technology.

The regulator pronounced on Tuesday that it hopes to see South Korea – which has turn a heart for cryptocurrency trade – normalize the practical silver business in a self-regulatory environment.

“The whole universe is now framing the outline (for cryptocurrency) and therefore (the government) should rather work more on normalization than augmenting regulation,” pronounced Choe Heung-sik, arch of South Korea’s Finance Supervisory Service (FSS), told reporters.

The latest news suggests authorities might adopt a lighter regulatory touch, a step change from the probity minister’s warnings in Jan that the supervision was deliberation shutting down internal cryptocurrency exchanges, throwing the marketplace into turmoil.

FSS has been heading the government’s law of cryptocurrency trade as part of a charge force.

Cryptocurrency operators see Choe’s comments as certain step for the industry’s skeleton for self-regulation.

“Though the supervision and the attention have not nonetheless reached a full agreement, the fact that the regulator himself made transparent the government’s position on co-operation is a certain pointer for the markets,” pronounced Kim Haw-joon of the Korea Blockchain Association.

South Korea criminialized the use of unknown bank accounts for practical silver trade as of Jan 30 to stop cryptocurrencies being used in income laundering and other crimes.

Three internal banks including Shinhan Bank, Industrial Bank of Korea, NH Bank, are now charity cryptocurrency accounts to around 5 internal practical silver exchanges.

Choe pronounced that Kookmin Bank and KEB Hana Bank might have also put in place an suitable system, though they haven’t as nonetheless started doing transactions.

“I wish they (the banks) no longer fear authorities once they have the right system,” Choe added.

An central from FSS told Reuters tough regulatory slip of bootleg trade in cryptocurrencies will sojourn in place.

Bitcoin BTC=BTSP, the world’s most heavily traded cryptocurrency, is now changing hands at a three-week high of $11,160 on the Luxembourg-based Biststamp sell after descending as low as $5,920.72 in early February.

South Korean wiring hulk Samsung has already started prolongation of cryptocurrency mining technologies, internal media reported in January.

Reporting by Dahee Kim; Editing by Eric Meijer Shri Navaratnam

Article source: https://www.reuters.com/article/us-southkorea-cryptocurrencies/south-korea-regulator-flags-better-deal-for-cryptocurrency-industry-idUSKCN1G505Y