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South Korean cryptocurrency legal framework implementation is being stalled

01 August 2017 21:00, UTC

The representative of the Democratic Party of Korea Park Yong-Jin has voiced a proposal to amend the Electronic Financial Transaction Act, with a justification of the need to control the cryptocurrency operations even more precisely, Coindesk reports.

The amendments contain the proposal to make a more coherent definition of digital currency businesses and to characterize all cryptocurrency deal parties – sellers, brokers, issuers and managers. Apart from this, Yong-Jin insists that all companies must guarantee a financial risk insurance in case of cybercrimes and that they also must have the authorized capital of 500 million South Korean won (this sum equals $500,000) to get the authorities’ permit to operate with cryptocurrency. The amendments also contain provisions on the prevention of market manipulation and money laundering through cryptocurrency means.

The bill will be presented to the National Assembly in September, before that time it must get the approval of Financial Services Commission. The plans to regulate the cryptocurrency market have been announced by South Korea’s financial regulator back in November 2016, but no rapid and clear measures have been undertaken since then.