New Cryptocurrency Rules Take Effect In South Korea

The long-awaited new cryptocurrency rules take effect in South Korea. The rules start to work on Thursday, February 1, 2018.  The South Korean government sets these rules early. The government announces the presence of the rules on January 23. Above all, this is a time the government releases a document detailing the rules. 

During the releasing of the rules, the government says that the rules will start work on January 30.  According to the government, the laws aim to tackle anonymity issues. There is also the money laundering question. South Korea has a vast digital currency market. Perhaps, the ICT infrastructure is aiding the trade. South Korea has one of the fastest and reliable internet connections in the world. The cryptocurrency business solely depends on the internet. Now that there is the fast and reliable internet, it is easy to do the business. When introducing the rules last week, the government says many things. Among them, it means that it wants to tackle the issue of anonymity. Many cryptocurrencies enjoy this. You will not know who sends or withdraws the money.

Because of this digital coin nature, it is easy to use this mode of payment to do illegal business. Remember, when the Bitcoin enters the market in 2009, many associates it to the black market. It was until recently when a few people started to approve it. However, it is again facing opposition for different reasons. The Korean government also mentions something like money laundering. According to the government, many foreigners are using the anonymity feature to launder money. “A lot of Korean won goes out of the country easily,” the government claims. Advertisement" Find the best online casinos accepting Bitcoin at EasyMobileCasino.com. 

But, when releasing the new cryptocurrency rules, the government is transparent. It states that it does not seem intent to ban cryptocurrency business. It, however, says that it can do so if it is the only way to safeguard its people. Last week, the government, through an agency, fines eight cryptocurrency exchanges for breaking the law. The exchanges fail to protect clients by not able to erase data even after completing transactions. Some of the cryptocurrency exchanges have clients’ data for more than 12 months. Also, this is also after the client stops using the service.

Speaking on the new rules, Blockchain Momentum managing partner says that it is a good thing. “The digital currency markets are missing protocols for protecting investors. Above all, this is what the South Korean legislation wants to implement,” John Sarson says. John’s company invests in digital coins as well as blockchain-related enterprises. He adds that it is a commendable step the government is taking. “It is a good thing anytime an investment exchange knows their client. When it does this, it will make sure that their clients are doing things that are above board. Not things that are in contravention of the law. These rules help to achieve a greater scale and legitimacy,” John adds. Trade in bitcoin in Korean won is low on Tuesday. According to CryptoCompare, it stands at 4 percent. Also, this is far much low when you compare with Japanese yen’s 40 percent. The USD comes in at 30 percent. The new cryptocurrency rules will change everything.