The financial services Commission of South Korea (FSC) plans to regulate bitcoin and other digital currencies, and also to remove a complete ban on the holding of ICO in the country. The plans were made public the official representative of the Agency on 6 December 2017.
In his statement at a public sitting of the National Assembly, Deputy Chairman of the FSC Kim Yoon-BIM confirmed that the Commission plans to introduce regulation of the local cryptocurrency market to prevent illegal activities such as money laundering and tax evasion.
He also said that the Agency is closely following developments in the cryptocurrency market and are ready, if necessary, to impose tougher sanctions.
The government does not consider cryptocurrencies as money or financial products. We are going to regulate bitcoin, in order to reduce the cases of money laundering and tax evasion.
ICO only for professional investors?
In his statement, young-BIM argues that Agency can also shoot a complete ban on the holding of ICO, which came into force at the end of September 2017. He also expressed the view that they may only allow professional investors to participate in this innovative scheme to attract money.
He said that retail investors can’t participate in the ICO with the use of virtual currencies.
Bitcoin is a complex phenomenon in its nature. Therefore, we believe that professional investors have a sufficient level of competence to participate in the ICO, unlike ordinary citizens.
Meanwhile, the South Korean government currently imposes the local regulation of cryptocurrency exchanges. Under the new rules, the exchanges must comply with several standards for the protection of consumers and the normal “Know your customer” (KYC) to have the opportunity to work in the country.