September 2017, South Korea digital currency regulations task held a joint meeting to discuss the introduction of monitoring of virtual currencies and stricter regulation includes Bitcoin. The task is all about to composed to the country’s central bank, cryptocurrency companies and financial regulators.
A few among National Tax service and Korea Fair Trade Commission attend the meeting. The main agenda includes strengthening of user authentication procedures at exchanges. The ‘suspicious transaction reporting’ systems used at banks for deals related to virtual currencies.
Financial Services Commission(FSC) and task force chairperson Kim Yong-beom says that cryptocurrencies are neither currency, nor money, nor financial products.
“At this point, digital currencies cannot be considers money and currency, nor financial products”.
Possible ban on initial coin offerings and other developments
The discussion at the meeting also includes the possible ban of ICO fundraising platforms due to violations for Capital Market Act. According to the law, raising funds through stick issuance using cryptocurrencies considered an illegal act.
An FSC officially claimed that they will extend the provisions of the Act on fundraising,
“We will clearly state the foundations of the Act on the Regulation of Conducting Fund-Raising Business Without Permission for illegal fund-raising impersonating digital currency investment and strengthen levels of punishment”.
Additionally, the lax cyber-security practices in the country that have resulted in substantial customer data. It breaches and theft of funds at a foremost Bitcoin exchange. Moreover, other aspect was also discussed like character of virtual currency traders, permits and taxation.