The government of South Korea is preparing a draft law intended to prohibit all transactions involving crypto-currencies, including Bitcoin. Only companies meeting certain requirements may, upon the application of this device, operate in the trade of digital currency.
All in all, the State imposes six conditions before being able to trade of virtual currency in the country.
The objective of this project of law
South Korea is currently working on the implementation of a device attempting to change the law on the regulation of crypto-currencies. The objective of this law is to protect the business and establish a financial solid. The transactions of digital currency include the storage, management, acquisition, exchange, negotiation, and the organization of crypto-currencies. This device is therefore to control the area to allow total transparency.
Below is the video detailing perfectly these facts :
In an email sent to Reuters, Bithumb, the largest exchange of Bitcoin in South Korea, said that a good set of regulations will encourage the development of the market of the virtual currency. This decision could surely inspire other governments.
6 conditions must be met
The regulators are now aware of the size of this market. They have made provisions to allow companies to trade crypto-currencies to operate legally. Six conditions were agreed upon. They need to be fulfilled to be able to work in the sector. First of all, it is necessary that the funds of clients are kept separately. Second, companies need to provide the users with detailed explanations of the risks associated with such an investment. Then, they must confirm the real names of the users.
The industry professionals also have the obligation to establish a system of fight against money laundering and provide a tool for asset protection. Finally, they must increase transparency by disclosing the details of the transactions to the public.
Source : NewsBitcoin