South Korea Sets Up Cryptocurrency Regulation Task Force in a bid to finally establish a proper digital currency regulation in the country. What is the key goal of the project?
6 December, AtoZForex – This Monday, the South Korean government has set out the new cryptocurrency task force. Specifically, according to some online reports, South Korean officials have established a “virtual currency countermeasure task force”.
South Korea Sets Up Cryptocurrency Regulation Task Force
The special task force will aim to promptly oversee the measures to regulate cryptocurrency transactions. As a matter of fact, this is the second task force that has been set up by the government. The first one was a smaller task force, while it also only involved financial regulators.
According to the local reports, the first task force also had little influence on the development of the regulatory framework for cryptocurrencies. This task force has been inactive since September.
In an attempt to speed up the regulation, South Korean officials have agreed to set up a government measure to regulate the digital currency transactions. The regulatory activities would be carried out under the supervision of the Ministry of Justice.
South Korea Cryptocurrency Investors Protection
The new task force has had a meeting already. During the meeting, the officials have assessed the local and foreign cryptocurrency market trends and the future plans. The local online report has quoted the government announcement:
“We agreed that the Ministry of Justice will be the main ministry and will set up and implement the regulatory measures through consultation between the related ministries.”
As of now, there is no legislation for the protection of cryptocurrency investors in South Korea. The government is currently discussing the legal framework for the digital currencies. Another local online report has quoted the ministries:
“Virtual currency cannot be viewed as a financial product or money. While virtual currency trading is claimed to be safe and thus the future money, blockchain technology only guarantees secure transactions and does not guarantee value.”
For the purpose of investor protection, the officials are pursuing regulations to make sure that the cryptocurrency exchanges meet particular requirements. For instance, they should deposit client investment in banks or some other reputable institutions. Also, they should inform customers about the investment risks in detail.
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