The planned introduction of regulations for the bitcoin business in South Korea this year is in limbo, as authorities and regulators struggle to take a unified approach. For context, the increasing reputation of bitcoin and cryptocurrencies in South Korea spurred economic authorities to release a cryptocurrency task force in November 2016. Targeted around identifying regulatory and licensing parameters for bitcoin exchanges within the country, the task force was convened by the financial services commission, the South Korean economic regulator and watchdog.
Presently, financial authorities do not have any authority to oversee the cryptocurrency business in South Korea. The taskforce was touted as following a financial technology-forward agenda, one that would inspire the institutionalization of cryptocurrencies at the same time as serving as a watchdog to maintain a test on operators of fraudulent schemes.
Members in the task force consist of the bank of Korea, the South Korean central bank, the Ministry of strategy and Finance, the financial Supervisory service and numerous legal and educational specialists. The Ministry of science, ICT was tasked to supervise the registration of bitcoin and cryptocurrencies exchanges within the absence of any regulatory suggestions. The task force has mentioned present legal frameworks followed by different countries such as the United States and Japan.
In spite of numerous meetings within the following months, the task force yet to make development. Members in the task force have supposedly did not agree on whether the cryptocurrency need to be included in systems as soon as possible and the way the systems will work if included.
The report additionally cites a financial services commission official as noting:
“Every country has different factors of view on cryptocurrencies and there’s no consensus throughout governments on directions. There’s additionally a lack of systems that may be referred. So, we need to approach the marketplace carefully.”
This, in spite of the original roadmap of announcing the results of regulatory discussions this month, ahead of introducing guidelines this year. Korea has firmly cemented itself among the world’s largest exchange markets for bitcoin this year. Buying and selling activity during the last day suggests the entire value of bitcoin traded locally scaling above Japan, third by value after United States and China’s marketplaces.