Regulation of cryptocurrency is a very touchy topic, for rather obvious reasons. Governments around the world want to curb the hype associated with Bitcoin and similar currencies. At the same time, they need to come up with a way to let this ecosystem thrive in the years to come. It appears officials in South Korea are looking to relax that country’s current regulatory requirements. That is a positive development for the industry as a whole.
South Korean Regulatory Changes
Similar to most other Asian countries, South Korea has quickly made a big name for itself in the world of cryptocurrencies. Various exchanges in the country have begun making an impact over the past eighteen months. Companies such as Bithumb, Upbit, and Korbit have all become well-known companies, even though they are inaccessible to non-Koreans. That has not hindered their growth by any means.
Even so, the South Korean government has imposed some tight rules when it comes to cryptocurrency trading. It is an important first step toward regulating the cryptocurrency industry and bringing more legitimacy to currencies such as Bitcoin and Ethereum. These initial rules have not been perceived in a positive manner, as they seemingly impose restrictions upon cryptocurrency trading in general.
That situation will come to change in the very near future. Local news outlets have reported that Financial Supervisory Service (FSS) Governor Yoon Suk-heun confirmed the country will ease its cryptocurrency regulation fairly soon. The government has had time to review cryptocurrencies in detail and identified some changes which could help improve the country’s economy. He explained the situation as follows:
Regarding cryptocurrencies, there are some positive aspects… The FSS will collaborate with the FSC when an inspection of policies and financial institutions has different configurations associated with different scopes. FSC inspects policies, while the FSS examines and supervises financial institutions but with the oversight of the FSC.
While it remains to be seen how these upcoming changes will affect cryptocurrency trading, the development has been perceived as rather bullish. Back in January of 2018, South Korea was clearly dominating the cryptocurrency trading space. This is one of the reasons why prices of Bitcoin and other currencies soared to new heights, as South Korean investors were pumping money into this booming ecosystem. Due to the government’s crackdown on trading, the subsequent drop in prices was to be expected.
If the situation turns around in South Korea, a positive impact on global cryptocurrency trading can be expected. Until we know more about what these changes will entail exactly, there will be plenty of speculation regarding the future of Bitcoin and other cryptocurrencies. Right now, their prices are not looking all that great, and a change is direly needed. It appears that change may be facilitated by South Korean regulators later this year.