South Korea’s prime minister is reportedly raising alarms about cryptocurrency’s influence on young men and women as regulators draw up guidelines for the country’s exchanges.
“There are circumstances in which young Koreans such as students are jumping in to make quick cash and virtual currencies are used in illegal activities like drug dealing or multi-level marketing and advertising for frauds,” Prime Minister Lee Nak-yeon said in a statement translated from Korean by CNBC.
“This can lead to critical distortion or social pathological phenomena, if left unaddressed.”
Accordingly, the South Korean leader known as on government agencies such as the Ministry of Justice to look into the matter, CNBC reported.
Separately, the Economic Solutions Commission (FSC) is placing the finishing touches on proposed regulations for South Korea’s exchanges, the Hankyoreh newspaper reported.
“Cryptocurrency exchanges will be required to maintain requirements for customer protection, such as having separate deposits for customers’ assets, and for escalating transparency, such as having a process for confirming customers’ identity,” the publication quoted an unnamed official as saying. “The authorities will also be empowered to prosecute exchanges that break these rules.”
These shots across the bow come as South Korea has emerged as a hub of trading activity in bitcoin and other crypto assets. The nation is residence to two of the leading ten bitcoin exchanges by volume, according to CoinMarketCap.
South Korean exchanges have been the 1st areas where the bitcoin price tag reached $10,000 in this week’s run-up. Throughout the third quarter, the South Korean Won passed the U.S. dollar as ether’s leading trade pair, according to CoinDesk’s most recent quarterly State of Blockchain Report.
But South Korean regulators have currently taken stern measures in the crypto asset market place. In September, the FSC banned domestic initial coin offerings and declared violators would be dealt with in a Virtual Currency Detention Center.
Photo of Prime Minister Lee Nak-yeon through Shutterstock.
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Published at Wed, 29 Nov 2017 23:00:29 +0000