Daily Management Review

South Korea to tighten cryptocurrency regulation


06/21/2018


After the Bithumb was hacked, South Korean government announced tightening of the regulation of crypto-currency exchanges and accelerating implementation of the regulatory framework for the industry, CCN reported.



btckeychain
btckeychain
"If the bill of the Democratic Party of Korea is adopted, the authorities will be able to introduce rules for crypto-currency exchanges identical to those for commercial banks," said a representative of the financial intelligence unit (KFIU). 

Now, crypto-exchanges are regulated as service providers, and by paying only $ 30, everyone can launch their own crypto currency trading platform. The authorities recognize digital assets exchanges as providers of communication services. At the same time, state institutions and financial bodies do not have the authority to directly regulate the exchange of the currency and the turnover of digital assets.

According to analysts, the authorities already intended to speed up the introduction of strict rules after hacking CoinRail. The attack on the Bithumb exchange will speed up the adoption of the draft law on the regulation of crypto-exchange exchanges.

It is expected that confidentiality, security and infrastructure will be improved with the participation of KFIU and the Financial Services Commission (FSC). At the same time, exchanges will be banned from working without observing the security standards that apply to financial institutions.

Earlier in June, after several months of discussions, the South Korean government and local financial agencies, including KFIU, came to a consensus on the regulation of the crypto-currency market. Particular attention was paid to protecting investors and preventing large-scale hacker attacks.

Recall, the second largest crypto-exchange in South Korea was subjected to hacker attack on the night of June 20. Bithumb immediately suspended withdrawal of funds from users' wallets, they are transferred to "cold wallets". Hackers stole 35 billion South Korean won (about $ 31 million) from the platform.

Representatives of the trading platform reported that, despite the fact that Bithumb has not yet clarified which crypto currency has been stolen, the site management promised to recover all user losses. The exchange asked users to "immediately stop making deposits in the crypto currency until a new message is published."

Bithumb is one of the largest stock exchanges in Asia with a trading volume of $ 270 million in the last 24 hours. Against the background of reports on the problems of the exchange, the bitcoin rate fell by 1.4% to $ 6.6 thousand. 

source: cnn.com






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