South Korea Task Force To Regulate Bitcoin and Cryptocurrencies

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The South Korean government has decided to create a task force so as to regulate Bitcoin and cryptocurrencies. Furthermore, the Ministry of Justice is now in charge to implement cryptocurrency regulations. Earlier this year, South Korea has decided to follow China and ban ICOs in the country.

Cryptocurrency Task Force to Control Bitcoin

Earlier this week, the South Korean Government has created a virtual currency task force in order to regulate cryptocurrency transactions. South Korea manages an important cryptocurrency volume. The Korean Won is within the top five fiat currencies traded for Bitcoin in the market.

With this task force set by the Korean government, there will be two agencies created. According to Maekyung Media, the first regulatory agency has been inactive since September and made little progress since its creation.

The intention is to severely regulate the cryptocurrency market and transactions. The regulations will be supervised by the Ministry of Justice who will be in charge of the agency. Regulators at the new task force had a meeting on Monday to evaluate the cryptocurrency market in the country and abroad.

“Related agencies have expressed serious concern about the recent rise in virtual currency speculative trading and the continued increase in virtual currency-based offenses,” wrote the newspaper. “We agreed that the Ministry of Justices will be the main ministry and will set up and implement the regulatory measures through consultation between the related ministries.”

The South Korean government is discussing a legal framework for cryptocurrency users. At the moment South Korea does not have any law that protects cryptocurrency investors.

“Virtual Currency cannot be viewed as a financial product or money. While virtual currency trading is claimed to be safe and this the future money, blockchain technology only guarantees secure transactions and does not guarantee value,” the ministries were quoted by The Korea Times.

Cryptocurrency Regulation Around the World

Different courtiers have decided to regulate the cryptocurrency market. The Russian government has several times commented on the matter.

“We have agreed on the following: the state should regulate the process of issuing cryptocurrencies, the process of mining, the process of circulation. The state should head this situation and regulate it legally,” said Finance Minister Anton Siluanov as quoted by RT.

The Treasury of the United Kingdom is also ready to regulate the cryptocurrency market. According to Robert Mendick and Gordon Rayner, the Treasury has disclosed plans to regulate Bitcoin in the UK.

Vietnam, China, Nepal and other countries have also decided to regulate the cryptocurrency market. In most of this countries, ICOs and Exchanges are forbidden, while in some of them, owning Bitcoin is illegal.