Crypto Frontline

South Korea Set to Adopt G20 Crypto Regulation

South Korea Set to Adopt G20 Crypto Regulation

South Korea Set to Adopt G20 Crypto Regulation
May 21
07:14 2018

There had been a lot of rumors and official statements coming from South Korea with regards to cryptocurrency regulation, but this one seems to be the most positive. Although there will still be a lot of details to take care of, due to the fact that South Korea has two financial regulators (the FSC and the FSS) it looks like South Korea is willing to adopt the regulatory framework that is being discussed by the G20 members.

G20 members to have the same crypto regulation

A good news for cryptocurrency enthusiasts, since according to the South Korea officials, “cryptocurrencies will be classified as assets and they will be regulated under the unified frame agreed upon between G20 members”.

That means Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, the Russian Federation, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States, and the European Union will have the same cryptocurrency regulation in play.

We’ve recently seen how Thailand had implemented its own cryptocurrency regulation, but now the first 20 economies in the world are working jointly to adopt the same set of rules, making the regulation equal. The move was widely expected by the cryptocurrency community and it seems like the framework will be implemented in July 2018.

If the news will materialize, it will draw an end to a period of high uncertainty that started at the beginning of 2018. The fear of regulation had put pressure on all major cryptocurrencies, some of them losing more than 80% of the value.

A regulatory framework in play will also open the door for institutional money pouring into the cryptocurrency industry. The only thing remaining is that all the companies from the industry should get their activity licensed. Some of the companies, like Coinbase had already done that, but that’s not the case for all of them.

Getting back to South Korea, the third largest cryptocurrency market in the world will have to take care of some subtle details like which agency will be in charge of taking care of supervision. Currently, the FSC is in charge of policy regulation and the FSS supervises financial institutions.

A joint regulatory framework between the G20 countries will diminish the appearance of cryptocurrency safe-havens. That is why the measures are expected to be implemented as soon as possible. We’ll see when it will take place and how.