South Korea ends the year with 6 bills to regulate the crypto industry

Regulations

The main financial regulatory body of South Korea has exclusively shared with the news. Information on Bitcoin.com related to six cryptocurrency invoices that have been submitted to the National Assembly. The most recent bill aims to protect the rights of crypto owners and to guarantee the security and reliability of encrypted transactions.

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Six invoices related to cryptography

South Korea's leading financial regulatory authority, the Financial Services Commission (FSC), shared information with Bitcoin.com on Thursday on various encrypted invoices that were submitted to the National Assembly. A regulator spokesman said:

There are six proposals made by members of the National Assembly … [however] there is no draft law on cryptography presented by the FSC at the National Assembly.

<img class = "size-medium wp-image-268152 alignright” title=”South Korea ends the year with 6 bills to regulate the cryptocurrency industry” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/fsc-1-300×281.jpg” alt=”South Korea ends the year with 6 bills to regulate the cryptocurrency industry "width =" 300 "height =" 281 "srcset =" https://news.bitcoin.com/wp- content / uploads / 2018/12 / fsc-1-300×281 .jpg 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/fsc-1-768×718.jpg 768w, https: // news.bitcoin.com/wp-content/uploads/2018 /12/fsc-1-696×651.jpg 696w, https://news.bitcoin.com/wp-content/uploads/2018/12/fsc-1-449×420 .jpg 449w, https://news.bitcoin.com /wp-content/uploads/2018/12/fsc-1.jpg 832w "sizes =" (maximum width: 300px) 100vw, 300px”/>Although each bill contains unique proposals for encryption, all include user protection clauses such as damage compensation, money laundering prohibition and market manipulation, use of non-public information and disclosure requirements.

The South Korean government has not announced any follow-up measures regarding cryptocurrencies since it implemented the real-name system in January. In addition, the first coin offers (ICO) have been banned since September last year.

First Crypto Bill

The spokesman for the FSC confirmed that the first enunciation bill presented at the National Assembly is an amendment to the law on electronic financial transactions, introduced in July last year by the representative Park Yong-jin.

The bill shows that, with the rapid increase in cryptographic transactions, users have been violated and "investment fraud has increased due to sales at multiple levels". Noting the lack of "definition of virtual currencies and regulations for virtual currency transactions in the current law", proposes definitions of virtual currency, business of managing virtual currencies, intermediation of virtual currencies, issuers of virtual currencies and activities management of virtual currencies. The bill also proposes some measures to protect crypt users, including methods of restricting transactions.

Registration with FSC

<img class = "size-medium wp-image-268155 alignright” title=”South Korea ends the year with 6 bills to regulate the cryptocurrency industry” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/coins-4-300×200.jpg” alt=”South Korea ends the year with 6 bills to regulate the cryptocurrency industry "width =" 300 "height =" 200 "srcset =" https://news.bitcoin.com/wp- content / uploads / 2018/12 / coins-4-300×200 .jpg 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/coins-4-768×513.jpg 768w, https: // news.bitcoin.com/wp-content/uploads/2018 /12/coins-4-1024×684.jpg 1024w, https://news.bitcoin.com/wp-content/uploads/2018/12/coins-4-696×465 .jpg 696w, https://news.bitcoin.com /wp-content/uploads/2018/12/coins-4-1068×713.jpg 1068w, https://news.bitcoin.com/wp-content/uploads/2018 /12/coins-4-629×420.jpg 629w, https: //news.bitcoin.com/wp-content/uploads/2018/12/coins-4.jpg 1084w "sizes =" (maximum width: 300px) 100vw, 300px”/>The next two bills were presented at the National Assembly in February. The first of the two was presented by the legislator Jung Tae-ok. "Establishes a virtual currency exchange system to guarantee business freedom and protect investors," Yonhap news agency described.

This bill defines and proposes obligations for entities related to cryptography, including "virtual currency business, virtual account management business and virtual currency assistance", according to the Korean government website. He also states:

Those wishing to manage a business of virtual currencies or virtual bank account management must be approved by the Financial Services Commission.

The next bill, presented by the legislator Jung Byung-guk, proposes to regulate cryptocurrency transactions. In addition to user protection measures, this bill aims to require all managers of a cryptocurrency transfer activity – including negotiation, brokerage and management – to register with the FSC.

Other invoices

<img class = "size-medium wp-image-268156 alignright” title=”South Korea ends the year with 6 bills to regulate the cryptocurrency industry” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/flag-korean-300×233.jpg” alt=”South Korea ends the year with 6 bills to regulate the cryptocurrency industry "width =" 300 "height =" 233 "srcset =" https://news.bitcoin.com/wp- content / uploads / 2018/12 / flag-korean-300×233 .jpg 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/flag-korean-768×598.jpg 768w, https: // news.bitcoin.com/wp-content/uploads/2018 /12/flag-korean-696×542.jpg 696w, https://news.bitcoin.com/wp-content/uploads/2018/12/flag-korean-540×420 .jpg 540w, https://news.bitcoin.com /wp-content/uploads/2018/12/flag-korean.jpg 784w "sizes =" (maximum width: 300px) 100vw, 300px”/>The fourth bill presented to the National Assembly is the law on reporting and the use of information on specified financial transactions. It was presented by the Rep. Je Youn-kyung of the ruling Democratic Party.

The fifth bill, presented in September by Senator Ha Tae-keung, proposes further amendments to the law on electronic financial transactions.

It requires encryption activities that sell, buy, mediate, exchange, manage and issue cryptocurrencies to get approval from the FSC. "In order to ensure the security and reliability of the currency transaction, it is necessary to establish and implement technological, physical and administrative security measures in accordance with the standards set by the Financial Services Commission," states the bill.

The sixth bill, presented in November by the legislator Kim Sun-dong, is known as the Digital Asset Trade Promotion Act. According to the text of the bill:

The purpose of this law is to protect the rights of owners of digital assets and to ensure the security and reliability of transactions of digital assets and to contribute to the development of the national economy by entering into the issues related to digital goods transactions.

What do you think of all these bills related to the South Korean crypt? Do you think that more regulations will be introduced soon? Let us know in the comments section below.

Images courtesy of Shutterstock and Park Yong-jin.

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