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.

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.

One more thing you may be interested in:

Interested in Cryptocurrencies and ICO's?

Follow our telegram channel for daily cryptomarket reports!

Join @cointrends

Related Articles

pubDate Newsline
1 hour ago Protect Your Ownership Data with EmerDPO!
1 hour ago How Bitcoin Cash Can Avoid the Same Mistakes as Bitcoin Core, Part 4 of 4
3 hours ago Johannesburg Gets a New Crypto ATM, Ban Threatened Harare May Lose One
5 hours ago Helbiz/IDAX — New Exchange Listing
14 hours ago Spanish Regulator Open to Approving Funds Investing Directly in Cryptocurrencies
1 day ago Poland Backpedals on “Irrational” Crypto Tax After Strong Backlash
14 hours ago Spanish Regulator Open to Approving Funds Investing Directly in Cryptocurrencies
1 day ago Canadian Regulator Warns Investors of Five Cryptocurrency Firms
14 hours ago Spanish Regulator Open to Approving Funds Investing Directly in Cryptocurrencies
1 day ago Canadian Regulator Warns Investors of Five Cryptocurrency Firms
1 day ago Australia Bans Cash Payments over $10,000 AUD
4 days ago Bitcoin in Brief Friday: UN Backs Crypto-Solar Project in Moldova, Malta Uses Blockchain in Public Transportation
2 days ago This Week in Bitcoin: Smooth Bitcoin Cash Upgrade, BCH and BTC Tax Payments in Florida
2 days ago Japanese Crypto Exchange Continues Global Expansion – Now in Five Countries
2 days ago This Week in Bitcoin: Smooth Bitcoin Cash Upgrade, BCH and BTC Tax Payments in Florida
2 days ago Crypto Floating Island Project Closer to Realization
2 days ago Markets Update: Digital Assets Show Recovery After the Past Three Days of Dips
3 days ago Inside the Competitive World of OTC Bitcoin Trading
4 days ago AirSwap and MakerDAO
4 days ago Newsletter May 18, 2018
4 days ago South Korea to Follow G20 Unified Cryptocurrency Regulations
6 days ago Investigation of South Korea’s Largest Crypto Exchange Upbit Continues
4 days ago South Korea to Follow G20 Unified Cryptocurrency Regulations
6 days ago Investigation of South Korea’s Largest Crypto Exchange Upbit Continues
4 days ago Cryptocurrencies to be Called “Digital Money” in Russia, Tokens – “Digital Rights”
1 month ago Vietnam’s Prime Minister Directs Central Bank to Strengthen Cryptocurrency Framework
4 days ago Cryptocurrency Brokerage Service Genesis Global Granted Bitlicense
1 week ago Bitcoin in Brief Thursday: Bitcoin Supporter Might Be Next NY Attorney General
6 days ago Investigation of South Korea’s Largest Crypto Exchange Upbit Continues
1 week ago Korean Regulators Widen Investigation of Cryptocurrency Exchanges
6 days ago Investigation of South Korea’s Largest Crypto Exchange Upbit Continues
1 week ago |아시아로의 확장: The Abyss, 상하이 ChinaJoy Expo서 프로젝트 소개
1 week ago Steve Eisman of ‘The Big Short’ Fame: What Value Does Cryptocurrency Actually Add?
4 weeks ago Bitcoin Versus Government Money: One is Clearly Superior
3 weeks ago Japanese Regulator Confirms 8 Crypto Exchanges Want Out, 100 Want In
3 weeks ago Japan’s SBI Unveils New Plans to Start an Exchange for Major Cryptocurrencies
3 weeks ago Venezuela Shuts Down Two Cryptocurrency Exchanges
2 months ago Another Thai Bank Shuts Down Accounts of Local Crypto Exchange
3 months ago Korean Prime Minister: Closing Down Crypto Exchanges ‘Not a Serious Consideration’
4 months ago Survey Says 31% of South Korean Workers Are Cryptocurrency Investors

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
May 22, 2018

How Bitcoin Cash Can Avoid the Same Mistakes as Bitcoin Core, Part 4 of 4

The following opinion piece on Bitcoin Cash was written by Jonald Fyookball We’ve already discussed 3 reasons why the bitcoin project was subverted: lack of education, lack of clarity, and centralized development. Today I will proffer two more: censorship and propaganda were allowed to run...

From: OP-ED

Johannesburg Gets a New Crypto ATM, Ban Threatened Harare May Lose One

A new crypto teller machine is now operational in South Africa’s largest city, Johannesburg. The ATM, which supports several digital coins, has been installed at a supermarket in the north-western part of the city’s metro area. It is the latest addition to a growing number of terminals...

From: Lubomir Tassev

Bitcoin in Brief Tuesday: Crypto Revolution Starts Reshaping Global Politics

Before all the Lambo memes, shady no-product ICOs, and get-rich-quick schemes invaded the scene, Bitcoin was meant to disrupt the current economic system. Today’s edition of Bitcoin in Brief showcases how that promise is starting to materialize in different fields, including the future of...

From: Avi Mizrahi

ICO Round-Up: Nearly 1 in 5 Offerings Accused of Fraud, Bermuda Passes Regulations, Thai SEC Holds Hearing

A recent “analysis of 1,450 cryptocurrency offerings” published by the Wall Street Journal has claimed to have revealed “rampant plagiarism, identity theft, and promises of improbable returns.” In other ICO news, Bermuda’s parliament has passed regulations that will legitimize...

From: Samuel Haig

PR: eToro Announces Expansion Plans

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

Nchain Acquires Majority Stake in BCH-Application Handcash

On Monday the blockchain research and development firm, Nchain, announced the acquisition of a majority stake in the Bitcoin Cash-centric startup Handcash. The Handcash platform allows users to send BCH in a contactless manner using near field communication (NFC) technology. Also read: BCH...

From: Jamie Redman
Upcoming ICO's
This week overview
Cryptocurrency rates
*Last hour average price&change
Coin Name Price Hour
Bitcoin logo BTC $8255.93 0.03%
Ethereum logo ETH $683.329 -0.21%
Ripple logo XRP $0.671178 -0.04%
Bitcoin Cash logo BCH $1178.02 -0.1%
EOS logo EOS $12.9627 0.18%
Litecoin logo LTC $132.63 -0.13%
Cardano logo ADA $0.239182 0%
Stellar logo XLM $0.320189 0.22%
Tronix logo TRX $0.0790614 -0.09%
IOTA logo IOT $1.71492 0.43%
NEO logo NEO $59.645 -0%
DigitalCash logo DASH $375.846 0.15%