South Korea’s FSC Urges Legal Crypto Regulation to Combat Hacks and Theft
Representative of South Korea FSC Urges Crypto Regulation, As Hacks and Theft Increase
South Korea has been both praised for and concerned about when it comes to cryptocurrencies. The former is due to its growing number of crypto exchanges. Unfortunately, the latter stems from the growing number of illegal activities such as, money laundering, hacks and token losses.
According to the Head of a department at South Korea’s Financial Services Commission (FSC), Hong Seong-ki, the necessary measures must be taken to address the concern at hand. In particular, he expressed that despite the exposure gained for the crypto market, “such trading platforms don’t seem to be well-enough prepared in terms of security.”
He further adds that regulations need to be in place, as it would encourage, “money-laundering prevention and investor protection,” stressing that the steps should be taken ASAP.
The decision to do so originated due to the hacks that took place at South Korea’s two dominating crypto exchanges, resulting in enormous losses of both bitcoin [BTC] and ethereum [ETH]. Based on Bloomberg’s report, a lawmaker proposed a bill that would tighten security and ensure that some control has been implemented in terms of the overall trades. However, the National Assembly has yet to respond.
What does it mean for crypto investors if such a bill has been approved for? It appears that the FSC will be given the responsibility to assess how trades are made and its related specs. Hong believes this is the right approach, as the lack of direction is what’s giving room for such illegal activities. He also hopes that the National Assembly responds and passes the bill by year-end, but at the same time does not see it happening as of yet.
By the sounds of it, such regulation might not be advantageous for the crypto market, as bringing in a regulating individual could limit its overall growth. Hong’s lack of interest in crypto has been cut and clear in a statement, where he openly said that he “wouldn’t recommend putting money in cryptocurrencies”.
With Hong making it obvious that such a regulation would limit crypto growth, how do you see this all turning out for South Korea’s presence within the crypto sphere?