The South Korean financial regulator has asked the authorities to immediately pass laws about cryptocurrencies due to the growing number of fraudulent activities on the cryptocurrency market.
According to Hong Seong-Ki, head of the Department for responding to the risks of virtual currencies to the Committee on financial services, cryptocurrency trading platforms gaining popularity, but do not provide the users required level of security. The urgent adoption of crypto laws in its turn, will allow government agencies to prevent money laundering through crypto currency exchange and to protect investors from fraud.
In March of this year became known that the legislators of South Korea from several political parties are preparing proposals for the regulation of cryptocurrencies, however they still have not been adopted by the National Assembly.
In the case of adoption of laws on cryptocurrencies, all trade exchanges of the country will be under the supervision of the financial services Commission. Gong Seung-Ki believes that the government should adopt the bill before the end of this year. He stressed that oversight does not entail official recognition of cryptocurrency trading in South Korea. If the bill is approved, the financial services Commission will only provide an order on the exchanges, but not conducive to their growth. According to Hong Seong-Ki, citizens do not have to invest in virtual currency.