South Korea has a love-hate relationship with cryptocurrencies. While a lot of their population has gone cryptocurrency mad, with significant trading volumes on the major exchanges coming from South Korean investors, the authorities there have not always been as forthcoming.
For example, they decided to completely ban initial coin offerings (ICOs) from taking place on their shores in September 2017. There have also been other strict measures taken on the market in the country.
However, there have been new cryptocurrency rules and regulations in the works for some time now. The main financial regulator in the country is calling for these new regulations to be introduced at a faster rate due to some serious security concerns. They believe that the security standards in the cryptocurrency sector at present are not satisfactory and there could be many vulnerabilities in existence.
The Financial Services Commission (FSC) also wants there to be clear-cut measures brought in concerning the likes of anti-money laundering an investor protection.
Due to the sudden nature of the cryptocurrency market taking off in 2017, the authorities were caught on the back foot and are still playing catch up. A lot of the platforms that are involved in the industry could be at risk, with numerous high-profile attacks already having occurred involving South Korean cryptocurrency companies.
It was only last month that there were two exchanges that were hacked. This led to a loss of $37 million for Coinrail and Bithumb suffered about $30 million worth of losses and were forced to suspend trading activity and transactions for some time on their platform following a breach.
The bills have been in the National Assembly for the past number of weeks, having been proposed initially back in March. As part of the bills, there will be changes to way cryptocurrency transactions are dealt with in terms of taxation.
It seems that so far, these bills are largely popular among politicians and there are no foreseen obstacles to their eventual implementation. This is why the FSC are urging the legislature to have these new regulations implemented by the end of 2018.