South Korean regulators calls for the urgent adoption of a regulation of cryptocurrency exchanges

One of the members of the leadership of the financial services Commission of South Korea (FSC) has called on politicians to urgently adopt a bill regulating the internal cryptocurrency exchanges, with the aim of eliminating flaws in security industry.

In an interview with Bloomberg Hong Seung-Ki (Hong Seong-ki), head of the special team for monitoring the virtual currency in the FSC, said:

«While the cryptocurrency markets are growing rapidly, it becomes clear that these trading platforms are not properly trained in the field of security systems».

In March, Democratic party of Korea has proposed a bill under which a local exchange will fall under the control of FSC. Hong said that the bill must be passed «as soon as possible,» adding that, most likely, it will happen at the end of the year. It was then, as expected, the national Assembly of the country’s progress in learning initiative.

«We’re trying first and foremost to legally approve the most urgent and important issues aimed at prevention of money laundering and the protection of investors,» he said, adding that he personally would not recommend to invest in cryptocurrencies.

Review of the regulator was made a month later after the two cryptocurrency exchanges in South Korea were hacked.

In mid-June, there was a hacking platform Coinrail, resulting in the market losing about $40 million. Just two weeks after that, on the hacking said the largest cryptocurrency exchange in South Korea Bithumb. As a result of this hacking was stolen cryptocurrency $31 million, however, thanks to the cooperation with other stock exchanges, the site has managed to recover some of the stolen assets worth $14 million.

In mid-July it was reported that the National Assembly of South Korea will be introduced multiple bills related to cryptocurrency. One bill, provoked by the hacking of exchanges have already been presented earlier. In accordance with cryptocurrency exchanges will be deemed «treatment of virtual currencies», they will be imposed the obligation to prevent money laundering.

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