South Korea concedes to crypto currency
6th July-The metaphor used in the title is quite easy to interpret on the face of the kind of circumstances that have been plausible for the digital universe in the past few months. It is quite noticeable that news for the crypto currency markets have not simply been positive, but it is important to realize that not everything seems bleak for this newly emerging sector of trading. South Korea has announced that it has started recognizing those crypto exchanges which are being regulated by the different kinds of financial institutions and the banks.
This has come as a final decision from the Korean government and plans are being carried out to give a legal status to the crypto currency industry. To provide a threshold of support to a number of people dealing in crypto currency, it has become essential to cast it in a better image, beginning with a new name for the industry. This industry will now be called, “Crypto currency exchange and brokerage.” Support from a legal framework would yield positive results in terms of the kind of assistance that can be gained from the law making authorities of the country.
It necessary to realize that this decision was reached by the government of the country after a long period of time. They finally came to this decision to ensure that hacking could be prevented and there would be no security breaches, moreover, there have been such cases which the Korean government had intended to prevent.
The Korean government did not want the people to believe that they have legitimized the crypto currency section; therefore, there was a delay in reaching this state. However, lately, it was revealed by the various publications of South Korea that it this nation has conceded to render the status of regulated businesses and thus leading to the formation of a brand new market for the exchanges and the traders. It is needless to mention that several grand changes have to be made in the methods of the crypto currency now that there is an added paradigm of national legislation. There is no way in which laws could be evaded by the investors or the exchanges with the involvement of law. Rules such as the law made for Anti-money laundering and also the laws such as “know your customer” will be implemented in a water tight manner.
Moreover, even exchanges will have to transform the way they have been dealing within the market so far. This transformation is not going to be as easy as is anticipated by a number of people, however, the prudence of the South Korean government will lies in the fact that now a number of activities and operation related to crypto currency would be brought under a decent, but most importantly, a legal framework within the country.
This is a huge step ahead for the crypto currency sector because it has led to a hope that in a given time period, there might be a rise of a class willing to accept crypto currency as a legitimate currency and at the same time, in possession of the sophistication required when dealing with virtual currency.