The financial regulators of one of the largest markets for cryptocurrency in the world, South Korea, have proposed a new plan to directly regulate cryptocurrency exchanges within the financial supervisory system.
As per the reports, FIU (Financial Intelligence Unit) is planning to directly regulate cryptocurrency exchanges and bring them into the regulatory system. At Present, the FSC (Financial Services Commission) indirectly regulates exchanges by issuing administrative guidance under its Financial Intelligence Unit.
The new proposal was confirmed by an official from FIU on August 6. An official stated that the government will be introducing a Crypto Exchange Licensing System, which is recommended by the FATF, to improve the transparency of crypto-currency transactions as well as imposing common standards on crypto exchanges.
The regulators expect that the new proposal will help to control the domestic crypto-trading practice, and will bring the nation into line with other regulators of the globe.
In an interview, Lee Tae-Hoon (Head of Administration and Planning at the FIU) said, “If the amendment is approved by lawmakers, we can raise the effectiveness of regulations by shifting from the current indirect regulation through commercial banks to direct regulation”.
Source – Business Korea