South Korea keeps an eye on cryptocurrencies and does not lower the guard when it comes to bitcoin regulation. The country’s nation embraces cryptos. For example, the recent survey has shown that over 30% of South Korean workers have already piled into cryptocurrencies. However, the state’s authorities are not happy with the crypto adoption, being cautious about it due to, as they call it, the potential crypto bubble burst.
And recently, South Korea even officially turned to the central banks and regulators of finance ministries in 23 other countries with the request to assist the South Korean government in restraining crypto trading. Moreover, for the same reason, the country’s authorities turned to 12 organizations, among which are the EU and the IMF.
Crypto Regulation Debate to Stir On the Global Level
On January 8, in Basel (Switzerland) there was an appointment of the FSB (Financial Stability Board) Steering Committee. South Korea was represented at this meeting by Kim Yong-bum, the who is a vice chairman of the country’s Financial Supervisory Commission (FSC), according to Aju News.
It is crucial to mention that FSB, whose meeting attended South Korea, is an international institution which establishes guidance concerning the worldwide system of finance. Obviously, South Korea is one of its members but besides it, there are also 23 countries (India, China, Russia, Japan, the UK, etc.) and 12 trans-border organizations, including the World Bank, the International Monetary Fund (IMF), the European Commission, on top.
Therefore, the conversations at the appointment were concerned about regulation and reforms in the industry of cryptocurrency, diminution measures to fight cybercrime, in particular.
In his turn, South Korean representative Kim talked about how criminals use trans-border transactions for money laundering and other malicious actions. At that time, he urged the other FSB members to collaborate on the curbing of cryptocurrency trading. Kim also called for the commencement of the overall international discussion on the matter.
South Korea “Crying” For Help
Furthermore, Kim mentioned what South Korean authorities have already achieved when trying to regulate the crypto market. For example, he reminded that South Korea:
- banned registration of new virtual account services for crypto exchanges
- called for identification of all the account holders
Now the goal of the country is to enhance transparency in the crypto trading as well as to hinder the growth of “speculative” operations and stop money laundering. Therefore, he induced the international colleagues to explore the possible risks of cryptos and their influence on the financial steadiness.
“We must support virtual currency countermeasures by integrating and sharing relevant information such as the contents and effects of the virtual currency regulation of each country,” added Kim.
Besides, South Korea expressed its desire to cooperate on the matter particularly with China and Japan. According to Yonhap, the head of the FSC (Financial Services Commission) Choi Jong-ku earlier informed that the deputy finance ministers from three states had discussed their views on control over cryptos during an appointment which took place last December.