Since 2017, Bitcoin has enjoyed towering levels of popularity, largely driven by sentiment in financial markets via blockchain technology. In July 2017, a member of South Korea’s democratic party, Park Yong-jin announced that the government will be stepping in to fully regulate Bitcoin.
This serves as a defining moment for the cryptocurrency and it will most definitely prop up the lawful trading of Bitcoin for one of the world’s most technologically advanced markets.
South Korean authorities will be establishing framework to facilitate the trading of Bitcoin.
Bitcoin (BTC) is now an accepted remittance method in the Philippines and South Korea.
Regulation guarantees that Bitcoin will receive official status as a financial instrument, for deposits, withdrawals and transfers. Individuals and businesses will be able to refer to the regulatory framework when it comes to Bitcoin transactions. This formalises what has before now been an unregulated, unchecked and independent financial asset.
The South Korean government has laid out requirements which stipulate that trading platforms offering BTC should hold a minimum of 436,000 USD in capital resources, in addition to comprehensive anti-money laundering and know your customer protocols.
The Bitcoin debate in South Korea has led to multiple legal frameworks being introduced to regulate the industry. At the moment, the Bitcoin industry is unregulated, but the cryptocurrency is on the cusp of a major upgrade to fully regulated status.
There is a 500 Million Korean Won requirement which is designed to safeguard traders and companies from misconduct and online fraud, by providing a “capital cushion”. The industry can operate with a degree of confidence, similar to the requirements set out by the Federal Reserve Bank and US banks, in respect of “stress tests” and “capital requirements”.
South Korean Bitcoin Market in Top 3 Worldwide
Fintech companies in South Korea have been encouraged by the latest news of regulatory approval for cryptocurrencies trading in the country. Waiting approval for Bitcoin trading is a step in the right direction, but BTC service providers have already received approval.
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