South Korea Mulls BitLicense-Style Rules For Crypto Exchanges

February 13, 2018 3:03 pm Published by

In order to regulate cryptocurrency exchanges, BusinessKorea reported Tuesday, South Korea is considering adopting a permission-based system similar to New York’s “BitLicense.

“We are positively considering the adoption of an exchange approval system as the additional regulation on cryptocurrencies. We are most likely benchmark the model of the State of New York that gives a selective permission.” – South Korean government official

The news reflects a softening of the country’s stance after some regulators had proposed exchange-based crypto trading be shut down completely, Coindesk reported.

In addition, South Korea has recently moved to ban the use of anonymous virtual accounts for trading in the country, the report said, with real-name accounts being compulsory beginning at the end of January.

BusinessKorea cited the government source as saying an alternative option would be to impose taxes instead of creating additional regulations, the report said.

“We will hold a meeting to respond to national petition related to digital currencies this month but we are highly likely to make up for the defects of existing measures only at the meeting,” the source told BusinessKorea.

A final decision on cryptocurrency exchanges, the source said, will occur after local elections in June, the source told BusinessKorea.

Launched after some delay in June 2015, the New York State Department of Financial Services’ (NYDFS) regulatory framework – dubbed the “BitLicense” – rules no company or individual can offer cryptocurrency services as a custodian or exchange without first receiving a license, Coindesk reported, and they must also operate in compliance with stringent money transmitter regulations.

The high cost of attaining a license has resulted in a limited number of exchanges now operating in New York, while some have left the state completely, the report said., Jack Durschlag

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