The primary financial regulator in South Korea is currently in talks with their Chinese and Japanese counterparts to fine-tune cryptocurrency regulations and guidelines.
Choi Jong-Ku, the Chairman of the Financial Services Commission (FSC) of South Korea, recently spoke of a discussion held between the three countries’ vice finance ministers that mainly pertained to the regulation of cryptocurrencies through collaborative measures.
South Korea and Japan are known for the cryptocurrency exchanges that operate from these regions and the daily amount traded in terms of cryptocurrencies (China was a part of that distinction until it decided to clamp down on Bitcoin). Therefore, it’s a no-brainer that together they hold a significant share of the cryptocurrency market among them, and, any discussion of such sort that pertains to regulations, whether justified or imposed without proper reason, is of grave importance. It should be noted, however, that there’s a stark contrast in how each of these countries handled the rise of cryptocurrencies, specifically Bitcoin.
South Korea currently holds the largest private Bitcoin exchange in the world and also has some of the world’s largest cryptocurrency exchanges. The cryptocurrencies, particularly Bitcoin, sell like hot cakes and the citizens who buy them cannot get enough by the looks of it. This demand has caused a stir with the authorities, and they are now taking strict notice of cryptocurrency transactions through the
country. After banning all initial coin offerings (ICOs) a few months ago, the South Korean government has very recently started taking regulatory measures against exchanges and virtual currency accounts that are operated for them through banks. However, it remains to be seen how its actions against anonymous trading of cryptocurrency affects the country’s mood for this financial phenomenon.
China’s central bank, on the other hand, has shut down the local Bitcoin industry through its strict measures.
Early last year, China began its mission against the cryptocurrency industry by starting what it termed as “on-site checks” for significant bitcoin exchanges. That action only led to putting a stop on withdrawals across several exchanges. Thankfully, the withdrawals resumed after four months but the cryptocurrency industry in China never really recovered from that hit. Then, China followed by having its central bank ban all ICOs, and then, essentially shut down Bitcoin
exchanges. Now, rumors are spurring around about the government’s intention to restrict Bitcoin miners that still exist in the country, but those reports have been mixed.
After reading the accounts of South Korea and China’s experiences with cryptocurrency, Japan’s approach would sound like a walk in the park. Japan somehow is at the other end of the aforementioned mindset, as it has been legally accepting Bitcoin as a recognized mode of payment as of last year. It seems like the country has already implemented all the regulations and guidelines for the cryptocurrency industry as it needed at the time. At the moment, Bitcoin is widely used in the country, and its adoption is encouraged to the point that Japan’s largest bank is currently devising a program to offer a trust service to local Bitcoin users. It should be noted that the bank in question is itself an investor in a Japanese Bitcoin exchange.
The results will be of interest to the crypto community market
Now that you have gone through each country’s approach, it would be as exciting to you as it is to us on how South Korea and China would identify with Japan’s management of the cryptocurrency industry. One can only hope that the developments from these discussions would turn out to be positive for the cryptocurrency world.