The South Korean government is considering using a new approval system for cryptocurrency exchanges, based on the Bitlicense model developed by the New York State Department of Financial Services.
Bitlicense Coming to Korea
Business South Korean regulators are considering introducing a new approval system for cryptocurrency exchanges, Korea reported.. An official who joined the government’s team for digital currencies said on Monday:
“We are considering introducing an exchange approval system to bring more regulation to cryptocurrencies. We will most likely be based on New York State’s selective permits model.”
New York State stock exchanges only obtain licenses (Bitlicense) or privileges from the New York State Department of Financial Services (NYSDFS). allows them to trade cryptocurrencies. The license in question has very restrictive controls and capital requirements, and only 6 companies have been able to obtain it so far.. Circle Internet Financial, XRP II, Coinbase Inc and Bitflyer USA succeeded in acquiring Bitlicense, while Gemini Trust Company and Itbit Trust Company are among the privileged. Business Korea will also be able to monitor closely,” Business Korea said, adding that the final decision will likely be made after the local elections in June:
“The Ministry of Strategy and Finance plans to adopt stock market approval systems quite willingly.”
No Need for Extremes
The South Korean government announced regulations for cryptocurrencies in mid-December. According to data from Bithumb, one of the country’s largest exchanges by volume, Bitcoin had a price of 20.2 million won ($ 18,500) on December 15.
The Korean government even considered such extreme measures as a wholesale ban on cryptocurrency trading and shutting down cryptocurrency exchanges to curb speculation in the cryptocurrency market.
Bitcoin is currently priced at around $8,700, and Korean regulators currently believe there is “no need to use strict policies such as a complete ban on trade because speculation has dwindled,” according to Business Korea. He said shutting down cryptocurrency exchanges at a National Assembly meeting was “not a serious consideration”. Deputy Prime Minister and Minister of Strategy and Finance Kim Do-yeon also commented on the matter, saying:
“We don’t need to get rid of or print (digital coins) digital currencies.”
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