South Korea to regulate brokers, transactions with cryptocurrencies

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South Korean lawmakers will be presenting several bills that will affect the legal status of cryptocurrencies.

South Korea is set to become the second country in the world to introduce national regulation on digital currencies, after Japan.

Bills move to give bitcoin legal grounds

One bill aims to revise the Electronic Financial Transactions Act. The requirements include the retention of capital of at least 500 million won ($436,300) and data processing facilities.

The Korea Herald quotes data of the Coinass market data trackers, showing that in the past two years in Korea was traded bitcoin worth 1.92 trillion won. They are expected to be tabled for consideration in July. According to data from the same source, the number of bitcoin transactions rose 17.1% in 2016, over the year. Park pointed out that local cryptocurrency transactions are still not tracked completely, highlighting the need for governmental control. More investors tend to flock to virtual currencies due to skyrocketing trade prices, while some, including lawmaker Park, compare the cryptocurrencies with tulip, whose price bubble burst rattled the European nations.

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