The south Korean government has not yet decided on its position on the market of crypto-currencies. Currently, South Korea is in the process of thinking about a system of licensing to help to regulate the exchange of digital currencies in the country. The authorities can introduce a system based on the model BitLicense, developed in New York, reported Business Korea. However, a final decision will not be made until after the month of June.
The system will only allow companies to exchanges that have applied for a license called the Bitlicense, with the Department of financial services of New York, to operate on the market. It also imposes reporting rules detailed and a minimum of capital is required. This limits the number of companies, reveals Business Korea.
A solution to regulate the market of crypto-currencies
The adoption of such a system would help to market digital currency in an institutional framework, more familiar and allow the government to oversee a market that is extremely volatile.
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The new approach to Korea is a dramatic turnaround after its crackdown against the enterprises of trade of crypto-currencies this year. The government has reacted by putting in place measures that are more restrictive in December to limit transactions are anonymous and allow regulatory authorities to have more leeway to block the exchange of virtual currency.
The position of South Korea, the reason for the decrease in the price of Bitcoin
The price of Bitcoin, the largest crypto-currency in the world, dropped 12 % last month, in part due to fears that South Korea prohibit the trade of digital currency. But the recent drop in the value of Bitcoin, from a record level last year, has convinced the south Korean government that a regulated market could be viable.
The ban on crypto-currencies would prevent the South koreans to invest in this revolutionary technology. The vice-prime minister Kim Do-Yeon recently said that there is no need to ban the digital currency.
Source : Fortune