Kevin Helms: South Korea Considers Bitlicense-Style System for Cryptocurrency Exchanges

virtual-currency trading speculation south-korea shut-down regulation prime-minister overheated nysdfs n-markets-and-prices license korean korea kimchi-premium fss exchanges digital-currency cryptocurrency close-down bitlicense bithumb bitcoin ban

South Korea Considers Bitlicense-Style System for Cryptocurrency Exchanges

The South Korean government is considering introducing an approval system for cryptocurrency exchanges based on the Bitlicense model, developed by the New York State Department of Financial Services.

Also read: Japan Cracks Down on Foreign ICO Agency Operating Without License

Bitlicense Comes to Korea

The South Korean regulators are considering introducing an approval system for cryptocurrency exchanges, Business Korea reported. An official participating in the government’s virtual currency task force, which has been discussing the matter, revealed on Monday:

We are positively considering the adoption of an exchange approval system as the additional regulation on cryptocurrencies. We are most likely to benchmark the model of the State of New York that gives a selective permission.

South Korea Considers Bitlicense-Style System for Cryptocurrency ExchangesThe State of New York allows exchanges to trade cryptocurrencies only when they have obtained a charter or a license, known as Bitlicense, from the New York State Department of Financial Services (NYSDFS). Its restrictive controls and capital requirements have led to only 6 firms being approved so far. Circle Internet Financial, XRP II, Coinbase Inc, and Bitflyer USA have received Bitlicenses, while charters were granted to Gemini Trust Company and Itbit Trust Company.

South Korea Considers Bitlicense-Style System for Cryptocurrency Exchanges“When the country accepts the model from New York, it will be able to bring cryptocurrencies into the institutional system as well as supervise the market in an orderly manner, according to the government,” the news outlet conveyed. While emphasizing that the final decision will likely be made after local elections in June, the publication asserted:

The Ministry of Strategy and Finance is aggressively planning to adopt the exchange approval systems.

At the end of January, the NYDFS requested cryptocurrency trading data from the South Korean regulators after two agencies conducted inspections of 6 major South Korean banks.

No Need for Extreme Measures

The South Korean government began announcing regulatory measures for cryptocurrencies in the middle of December. On December 15, bitcoin was trading at over 20.2 million won (~USD$18,500), according to data from one of the country’s largest cryptocurrency exchanges by volume, Bithumb.

South Korea Considers Bitlicense-Style System for Cryptocurrency Exchanges

In an effort to curb speculation, the Korean government considered extreme measures including an outright ban of crypto trading and closing down crypto exchanges.

With the price of bitcoin at approximately 9,747,000 won (~$8,967) at the time of this writing, the Korean regulators believe that “there is no need to use a hard-line policy, including a total ban on trading, as the speculation has subdued,” the news outlet noted.

Furthermore, the country’s prime minister confirmed last week at a National Assembly meeting that closing down cryptocurrency exchanges is “not a serious consideration.” Deputy Prime Minister and Minister of Strategy and Finance Kim Do-yeon also recently proclaimed:

We don’t need to get rid of or suppress digital currencies.

Do you think the Korean government will implement a Bitlicense-style set of regulations? What do you think it will do to the Korean crypto market? Let us know in the comments section below.

Images courtesy of Shutterstock, NYSDFS, and Bithumb.

Need to calculate your bitcoin holdings? Check our tools section.

The post South Korea Considers Bitlicense-Style System for Cryptocurrency Exchanges appeared first on Bitcoin News.

Interested in Cryptocurrencies and ICO's?

Follow our telegram channel for daily cryptomarket reports!

Join @cointrends

Original article was created by: Kevin Helms at news.bitcoin.com

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency or ICO.

Related Articles

pubDate Newsline
56 minutes ago Bitcoin Divorce Presents New Challenge for Rabbinical Court in Israel
4 hours ago Malta to Give “Peace of Mind” to Crypto Companies
4 hours ago Malta to Give “Peace of Mind” to Crypto Companies
11 hours ago Signals Partners with Blockchain Prediction Market Platform STOX
11 hours ago Signals Partners with Blockchain Prediction Market Platform STOX
12 hours ago Trading Tip `The Wall´ – Drop Tokens That Suffer From Overtokenization
15 hours ago Salon Offers Visitors In-House Cryptocurrency Mining When Blocking Ads
1 day ago Number of Cryptocurrency Hedge Funds Rises to 226 Globally
15 hours ago Salon Offers Visitors In-House Cryptocurrency Mining When Blocking Ads
1 day ago Number of Cryptocurrency Hedge Funds Rises to 226 Globally
1 day ago Crypto Trading in 2018: New Strategies, Bigger Crowds and Diminishing Returns
3 days ago Markets Update: Bitcoin Recovers to Test $10,000 Area
1 day ago Crypto Trading in 2018: New Strategies, Bigger Crowds and Diminishing Returns
1 day ago Number of Cryptocurrency Hedge Funds Rises to 226 Globally
1 day ago Number of Cryptocurrency Hedge Funds Rises to 226 Globally
2 days ago Japanese Crypto Associations Merging to Restore Trust Across the Industry
2 days ago Trader at Chicago Firm Stole Millions in BTC – Faces 20 Year Sentence
2 days ago Bank of America Has Filed More Cryptocurrency Patents Than Any Other Company
2 days ago 카이버 네트워크 진행사항 업데이트 (2018. 02. 16)
2 days ago SelfKey유저들의 이더리움 토큰 거래를 위한 SelfKey 지갑과 카이버 네트워크 거래소의 연동
4 days ago Korean Government Answers Petition Against Unfair Cryptocurrency Regulations
5 days ago How South Korean Gamers Get Online and Why They Need Blockchain
5 days ago Bank of Thailand Bans Banks From Cryptocurrency Activities
1 week ago Most Crypto Traders in South Korea Remain Anonymous Despite Regulations
1 week ago NY Regulator Demands Vigilance Against Market Manipulation from Bitlicense Firms
1 week ago Korean Prime Minister: Closing Down Crypto Exchanges ‘Not a Serious Consideration’
2 weeks ago US Financial Regulator Requests Crypto Trading Data From South Korea
1 month ago Survey Says 31% of South Korean Workers Are Cryptocurrency Investors
1 week ago Japan Cracks Down on Foreign ICO Agency Operating Without License
1 week ago Korean Prime Minister: Closing Down Crypto Exchanges ‘Not a Serious Consideration’
1 month ago China to Coordinate Against ”3,000 Fake Blockchain” Platforms

Stay on top of Altcoins and ICO trends.

Subscribe to our free Weekly Cryptomarket report

Delivered once a week, strongly to your inbox.

Subscribe to our mailing list

You may also be interested in:

February 19, 2018

Bitcoin Divorce Presents New Challenge for Rabbinical Court in Israel

While some state authorities and financial regulators might deride bitcoin, more people are using the cryptocurrency in their everyday lives. This has recently become evident by divorce cases around the globe involving bitcoin, with the latest example coming from Israel. Also Read: Half of Large...

From: Avi Mizrahi
February 18, 2018

American ATM Network Athena Bitcoin Adds Bitcoin Cash Support

Bitcoin cash (BCH) is now available for trading in dozens of new physical locations across the US. The American ATM network Athena Bitcoin has added support for buying and selling the cryptocurrency for fiat cash on all its machines. Also Read: Polish Financial Authorities Paid Youtuber to...

From: Avi Mizrahi

CFTC Offers $100,000 Bounty to Crypto Pump-and-Dump Whistleblowers

The US Commodity Futures Trading Commission (CFTC) has created a bounty to encourage whistleblowers coming forward in exposing “pump-and-dump” schemes. “Customers should not purchase virtual currencies, digital coins,” the CFTC warned, “or tokens based on social media tips or sudden...

From: C. Edward Kelso

Malta to Give “Peace of Mind” to Crypto Companies

The government of Malta has come up with an idea that businesses dealing with cryptocurrencies may find interesting. A new policy document seeks to set up a special agency which will “certify” blockchain platforms and “verify” crypto transactions. It is supposed to “bring peace of...

From: Lubomir Tassev

PR: Money Token Applies for Royalty-Free Patent on Crypto-Backed Lending Technology

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press...

From: Bitcoin.com PR

Switzerland Enacts ICO Guidelines

Just days before the tiny nation of Gibraltar was said to draft their first initial coin offering (ICO) regulations, Financial Market Supervisory Authority (FINMA) of Switzerland appears to have stolen its thunder in an eleven page document published today. It could be the standard by which...

From: C. Edward Kelso
Upcoming ICO's
This week overview
Token Name Starts
BANCA (BANCA) logo BANCA (BANCA) 1 days
Play 2 Live (LUC) logo Play 2 Live (LUC) 3 days
Origami (ORI) logo Origami (ORI) 4 days
Loyakk Vega (LYK) logo Loyakk Vega (LYK) 4 days
Cryptocurrency rates
*Last hour average price&change
Coin Name Price Hour
Bitcoin logo BTC $10549.6 -0.2%
Ethereum logo ETH $927.572 0.45%
Ripple logo XRP $1.13121 0.58%
Bitcoin Cash logo BCH $1494.36 0.11%
Litecoin logo LTC $217.587 0.62%
Cardano logo ADA $0.389378 0.35%
Stellar logo XLM $0.453891 0.57%
NEO logo NEO $127.606 -0.08%
EOS logo EOS $9.45755 0.54%
IOTA logo IOT $2 0.54%
DigitalCash logo DASH $689.899 0.09%
NEM logo XEM $0.530163 -0.34%