The South Korean financial regulator is set to relax its cryptocurrency regulations. This is after the regulator hinted that they may shift the classification of virtual currencies from being non-financial assets to financial assets.
One of the major reason why South Korea is relaxing its cryptocurrency regulations is the G20’s fast approaching deadline which is set for next month. The G20 largely considers digital money as financial assets.
“It’s almost certain that cryptocurrencies will be classified as assets and the main issue will be centered on how to regulate them properly under the unified frame that will be agreed upon between G-20 nations. Given the current stance, this isn’t good, but we will step up efforts to improve things” according to FSS (Financial Supervisory Service) which is under the mandate of the Financial Services Commission, South Korea’s financial regulator.
According to the Korean Times,
“The justice ministry also plans to renew talks with relevant government agencies to prepare a set of guidelines to reduce room for exploitation of crypto transactions for illegal activities such as tax evasion and money laundering”
There has been heightened belief and positive outlook of the cryptocurrency market in South Korea after the FSS welcomed a new governor, Yoon Suk-heun who indicated that digital currencies have some positive aspects.
Korea is the third largest cryptocurrency market globally and its harsh regulations around virtual currencies has, in a big percentage, undermined the market from realizing its full potential.
The highest bank in the country, Bank of Korea, has also indicated that a task force has been out since January looking at the possibility of the bank issuing its own digital currency.
Do you think the crypto market in the country will inch closer to achieving its full potential now that South Korea is set to relax its cryptocurrency regulations?
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