April 18, 2021

South Korea decided not to close cryptocurrency exchanges on condition …

South Korea decided not to close cryptocurrency exchanges subject to strict regulation

The South Korean government is preparing to introduce a number of restrictions on the circulation of digital assets and tighten the requirements governing the operation of cryptocurrency exchanges. Writes about it ZDNet.

In particular, the new amendments will affect foreign citizens and minors. They will no longer be able to trade cryptocurrencies in the Korean jurisdiction and open accounts with local banks.

South Korea decided not to close cryptocurrency exchanges subject to tight regulation The government ...

The restrictions apply to the banks themselves. They will be prohibited from owning virtual currencies, including under equity capital, buying and receiving them as collateral.

Cryptocurrency exchanges will have to conduct more thorough scrutiny of traders using their platforms, and the trader will have to pay tax on the income they receive from trading virtual assets.

South Korea decided not to close cryptocurrency exchanges subject to tight regulation The government ...

The corresponding announcement was made shortly after the end of an urgent meeting of the country’s financial regulators, associated with the growth of cryptocurrency rates and interest in them among the population..

In addition, Stellar co-founder Joyce Kim posted a link to local news outlet Daum on Twitter, which provides additional information on the outcome of this meeting..

South Korea decided not to close cryptocurrency exchanges subject to tight regulation The government ...

“The Korean government will regulate bitcoin exchanges, but will not shut them down. Exchanges will face 6 reasonable requirements for KYC / AML, key storage, storage of fiat on third-party accounts, warning consumers about trade and transparency of order books, ”she writes..

Recall that the information that South Korean lawmakers may ban the trading of cryptocurrencies was spread by a number of local media last week..

Photo: Lukasz Stefanski

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