The South Korean Financial Services Commission (FSC) lately has been pushing onto lawmakers to finish and approve their cryptocurrency bill which will be the country’s first of this kind.
The Commission’s virtual currency response team head Hong Seong-ki has stated with a warning tone of the security and money laundering risks in which the domestic crypto exchanges have been involved in continuing:
“While crypto markets have seen rapid growth, such trading platforms don’t seem to be well-enough prepared in terms of security. We’re trying to legislate the most urgent and important things first, aiming for mooney-laundering prevention (AML) and investor protection. The bill should be passed as soon as possible.”
Couple of months ago in May, the Financial Services Commission have joined a trial that came as a proposal and invitation from the Korea’s Financial Supervisory Service (FSS) in order to implement anti-money laundering (AML) compliance between exchanges. These moves pushed by the financial capital Seoul have been most probably initiated after some of the recent high profile hacks on exchanges.
The bill’s draft should be presented by the ruling party of Korea and would hopefully bring exchanges under regulation from the FSC but nonetheless it will still require approval from the National Assembly.
If the bill is passed, that would not mean that the FSC is endorsing cryptocurrency trading but it will only help the commission to act as an oversight body over the exchanges operations and not as a promoter of their growth – has been added by Seong-ki.