|Aug 15, 2018 11:51 PM||By: Ben Noble | 9119 Views|
Throughout the past two months, investors in the financial crypto market of South Korea have continuously stated their optimism towards a drastic change in the regulatory landscape of crypto.
Since beginning February, the crypto market has continued the third-worst correction in its past, experiencing a 78 percent decline in price. Despite the bear market, the cryptocurrency industry of South Korea has seen remarkable progress regarding regulation and adoption.
Due to the excessive volatility of the cryptocurrency market, the vast bulk of investors in the global market have recently been focused on the short-term price trend and progress of significant cryptocurrencies.
But, while the price of cryptocurrencies is an essential metric that confirms the level of adoption of digital assets, it is equally important to acknowledge positive developments in the cryptocurrency sector.
Since June, the cryptocurrency market of South Korea has seen real growth in digital asset-related regulation, principally due to the increasing efforts of the government to achieve practical regulatory frameworks for cryptocurrency and blockchain organizations.
Local financial authorities and the FSC (Financial Services Commission), the chief financial watchdog of South Korea, have concentrated on legitimizing the industry by accepting cryptocurrencies as regulated financial institutions, setting them under the authority of the FSC.
Once the Congress passes the cryptocurrency and blockchain bill, every cryptocurrency exchange will be needed by law to comply with the same security, internal management, and AML (anti-money laundering) policies local banks and financial institutions are required to remain in compliance with.
Authorities at the FSC affirmed that the bill if passed, will ultimately put an end to the “Kimchi Premium,” which has decreased substantially since December of last year and decrease cases of security breaches and hacking attacks.
A few government officials have claimed the FSC to require exchanges to get insurance for their cryptocurrency holdings so that trading platforms can reimburse their clients if their supplies are stolen in potential hacking attacks.
Last week, We stated that the government of South Korea is promoting blockchain training as a part of its attempts to bolster the fourth industrial revolution.
This week, South Korea has built its budget for blockchain development in 2019, at a trillion won, more than it has ever spent in the development and deployment of innovative technologies. The government has not given such a large sum of capital on other technologies like artificial intelligence, virtual reality, and big data.
Following the enthusiasm confirmed by the federal government, regional governments such as Busan, the 2nd largest city in South Korea, have openly disclosed their plan to create the next “Crypto Valley” in the country, attracting cryptocurrency exchanges, business, developers, and talents.
Jeju Island, a region in South Korea that has the power to operate independently outside of the federal government, has also announced that it plans to develop the city into the next Malta, a haven for cryptocurrency and blockchain businesses.