South Korea: New Cryptocurrency Rules Take Effect

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South Korea: New Cryptocurrency Rules Take Effect

Earlier this month, regulatory plans by South Korea regarding cryptocurrency speculation had given a reason to worry to the investors but the market has a positive atmosphere since the new rules took effect on Tuesday.

The South Korea’s Financial Services Commission confirmed that the new rules, which were drawn out earlier, have been implemented. These rules have been implemented so that the money laundering and anonymity issues that plague the cryptocurrency trade can be tackled efficiently.

A document was published on 23rd January in which it was stated by the regulator that from January 30th, it shall allow cryptocurrency trade to take place from real-name bank accounts. These rules allowed the bank to follow with their obligations of KYC AML (Know your customer, anti-money laundering) as well.

These measures were drawn with the intent to lessen the level of exploitation of cryptocurrency transactions for illegal activities, whichinclude tax evasion, crimes and money laundering. The new cryptocurrency rules are expected to bring better legitimacy to the cryptocurrency market and trade procedures.

The markets seem relatively pleased with the implementation of the new cryptocurrency rules.  The participants of the cryptocurrency space commented that these steps taken by South Korea will bring positive results on a long-term basis.

Co-Founder and President of Cryptocurrency startup TenX, Julian Hosp said that the new rules are the beginning of the crackdown on the illegal usage and anonymity some of the cryptocurrencies may possibly have.

John Sarson, the managing partner at Blockchain Mometum said that cryptocurrency markets had been lacking the protective protocols for the investors and by the passing of these new rules, South Korea intends to implement just that. Blockchain Momentum invests in companies, which are related to cryptocurrencies and blockchain.

South Korean cryptocurrency exchange Bithumb initiated the real-name cryptocurrency identification process this morning. According to a statement of Bithumb’s representative, nothing had changed in terms of coin transaction and operations had gone without a hitch on Tuesday.

On Tuesday, the trade in Korea was dominated by bitcoin on Tuesday and stood at 4% according to the data posted CryptoCompare.