Bitcoin Jumps As Korean Regulators Nurture Cryptocurrency
The month of July had been relatively better for bitcoin and cryptocurrency investors considering the positive inflow of news of adoption from all over the world.
One of the best news perhaps was the reorganization of its structure by the South Korean Financial Services Commision. In a press release, the FSC mentions its plans to execute “a major organizational reshuffle to better protect financial consumers and proactively respond to financial innovation in the fourth industrial revolution era.“
Further, it also announced the formation of a financial consumer bureau,
“The newly-created Financial Consumer Bureau will undertake overall responsibility for financial consumer protection, currently scattered around the sector-specific bureau”
To the delight of investors, the bureau would overlook policies pertaining to new technologies impacting the financial services including fintech, big data, and cryptocurrencies.
The move by the FSC follows the report published by the international watchdog, the Financial Stability Board (FSB) which said that cryptocurrencies “do not pose a material risk to global financial stability at this time.” The FSB has members from the G20 countries which includes South Korea as well.
Industry observers such as the South-Korea based Fantom Foundation, have welcomed the decision of the FSC to create a new department for virtual coins. An official from the foundation said,
“Virtual coin and related blockchain technologies will come to our everyday life sooner or later. I think Korea can be an ideal incubator to test drive new virtual coins and their blockchain systems. High-speed internet infrastructure is already here, unparalleled to any other country in the world. And the Korean people are very adoptive of technology. Now it is the government’s role to establish a favorable environment for virtual coins and their blockchains.”
Not only does South Korea have the biggest virtual coin exchange, Bithumb, with them, the nation is quickly becoming a go-to place for cryptocurrency and blockchain enthusiasts to explore and realize their full potential.
Even during the start of this year, the price of bitcoin in South Korea was 50% higher than the world average, which shows the amount of participation and excitement amongst the Korean citizens. This price difference came to be known as the “kimchi premium.”
While countries have been doing away with cryptocurrencies and have abstained from giving them credibility, the South Korean Supreme Court regarded cryptocurrencies as a legally recognizable asset.
Moreover, to curb frauds through exchanges, the regulatory bodies have also released anti-money laundering (AML) policies to rule out the suspicious accounts made with that exchanges and expand their due diligence procedures