A South Korean legislator presented a bill to promote cryptocurrency trading and the development of cryptographic exchanges. In addition to requirements such as capital, human resources and internal systems, the bill proposes the establishment of a committee to promote and support encryption.
Read also: The Indian Supreme Court moves the cryptographic hearing, the community asks for positive regulations
Promotion of encrypted trading
Korean MP Kim Sun-dong, a member of the National Assembly's Political Committee, announced last week that she had initiated the law on the promotion of digital asset trade, according to local media reports. Seoul Finance processing:
"The law on the promotion of digital asset trade" includes a comprehensive plan to establish a guideline to promote the development of virtual currency exchanges and blockchain technology, tax reduction and exemption, measures against hacking damage and prevention of market disorders.
Kim stressed the need for a law dedicated to the promotion of cryptographic businesses to prevent companies from leaving Korea, citing Bithumb as an example. He stressed that although cryptographic transactions in Korea accounted for a large percentage of transactions on the national stock market at the start of this year, one of the largest cryptographic exchanges, Bithumb, was recently sold to a consortium with based in Singapore.
He also noted that Japan has already completed legislative procedures to institutionalize encrypted transactions and the United States has allowed the trade in cryptocurrency derivatives.
Information on the new Crypto Bill
The law first defines "virtual content with an apparent value such as online money, points, game items and virtual currencies as digital assets", detailed publication. It also defines the operators that treat them as a trading company of digital assets. The added sales point:
Those who want to manage a digital asset trading business should have over 3 billion won [~$2.66 million] in capital, enough staff, computer systems and physical equipment must be approved by the Financial Services Commission [FSC].
<img class = "size-medium wp-image-252525 alignright” title=”The Korean legislator presents a bill to promote cryptocurrency trading” src=”https://news.bitcoin.com/wp-content/uploads/2018/11/fsc-1-300×277.png” alt=”The Korean legislator presents a bill to promote cryptocurrency trading "width =" 300 "height =" 277 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/11/fsc- 1-300×277.png 300w, https://news.bitcoin.com/wp-content/uploads/2018/11/fsc-1-455×420.png 455w, https://news.bitcoin.com/wp-content/ uploads / 2018/11 / fsc-1.png 463w "sizes =" (maximum width: 300px) 100vw, 300px”/>If an exchange is violated and its customers suffer losses of encrypted assets, the bill states that the exchange must take responsibility for damages to traders.
The publication added that some examples of promotion of the sector mentioned in the bill include the establishment of a committee for the trading of digital goods, the promotion of research and development projects, financial support, professional training and tax reduction. According to the newspaper Seoul Seoul, the committee will have the task of solving the issues required by the FSC, such as the definition of standards and policies related to cryptographic resources, as well as the coordination between the competent administrative agencies.
Kim was also quoted as saying:
The government is focusing only on the risk of virtual currency and focuses only on the repression of illegal activities … In order to drive the global trend in the development of blockchain technology, it is necessary to prepare the laws and regulations as soon as possible.
What do you think of this new Korean newsletter? Let us know in the comments section below.
Images courtesy of Shutterstock, Seoul Finance and FSC.
Do you need to calculate your bitcoin holdings? Check our tools section.