Categories: CryptoNews

South Korea May Weaken Its Cryptocurrency Regulation Soon

South Korea is a very important country when it comes to cryptocurrency. With local trading platforms generating a lot of volume for most top currencies, the regulatory aspect is taking center stage. Although the initial guidelines were a bit harsh, it seems a more lenient approach will be embraced soon.

Easing Crypto Regulation in South Korea

According to local news sources, South Korea’s Financial Supervisory Service Governor Yoon Suk-heun is looking to ease cryptocurrency regulation. This news comes at a rather interesting time for the industry. With prices having risen in recent weeks, one would have expected a much tougher crackdown on Bitcoin and altcoins.

The current regulation in place is not all that problematic. While there are some aspects which could be challenging for companies, there is nothing preventing wallet operators and exchanges from running their businesses. Some basic guidelines are an absolute must in this otherwise volatile industry.

With the regulation now potentially being weakened a bit, it will be interesting to see what the future holds. The FSS will work with the country’s Financial Services Commission to review the current policies and make adjustments accordingly. Even though Yoon acknowledges there are still some ‘issues” to be clarified when it comes to cryptocurrency exchanges, the future seemingly looks bright.

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Improving the existing regulation will only further legitimize cryptocurrency as an industry, as the services provided by exchanges and other companies will be deemed more serviceable in the eyes of the general public. It is evident South Korea wants to take a proactive approach when it comes to cryptocurrency, rather than degrade this nascent industry.

Yoon is convinced that any change – big or small – will positively impact the cryptocurrency space. It is rather uncommon to see government officials be so open-minded when it comes to Bitcoin and altcoins. For now, the KYC and AML procedures will likely remain in place, although some minor modifications may be made. It is now important to get the banks to attract more cryptocurrency traders throughout the country.

If everything goes according to plan, looser regulation will make cryptocurrency even more appealing in South Korea. That can never be a bad thing, even though other countries around the world need to step up their efforts as well. The future looks pretty promising for Bitcoin, as good things continue to happen across the board.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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