South Korea will reduce regulation of the cryptocurrencies upon the recommendations of G20

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4 months ago
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According to The Korea Times, South Korean authorities are planning to ease control of the cryptocurrency market due to the recommendations of G20 members. The countries decided that the deadline for establishing “unified regulations” for the crypto industry would be July of this year.

In response to that decision, the Financial Services Commission of South Korea (FSC), leading the Financial Supervisory Service (FSS), revised the guidelines for “all activities” of local crypto-exchanges.

According to FSC, the regulation of cryptocurrencies is a rather complex process, and therefore FSC seeks to establish international cooperation on this issue, which, in particular, will promote the development of unified approaches to the regulation of digital assets.

In addition, the agency said that FSC and FSS will not contradict the official position of the government of the country regarding digital assets. The latter, according to the FSC, can hardly be identified with traditional financial assets. Moreover, earlier the authorities of South Korea classified cryptocurrencies as a “non-financial product” because of their speculative nature.

In addition, the other day it became known that the market of digital currencies in South Korea can be recognized as a separate industry, and local crypto-exchange companies can be regarded as financial institutions.