South Korea has taken a major step towards regulating the cryptocurrency industry by passing the first stage of a new bill. The bill is designed to protect investors and reduce speculation in the market.
South Korea Passes Cryptocurrency Bill
South Korea has become the latest country to pass a bill designed to regulate the growing cryptocurrency industry. The bill, which has three stages of legislation, has been approved by the South Korean Parliament, with the first stage officially passing.
The first stage of the bill will require all cryptocurrency exchanges to register with the Financial Services Commission (FSC). This will give the FSC the authority to regulate the industry and protect investors from risks such as fraud and market manipulation. In addition, the bill also requires that all exchanges must have the necessary infrastructure to protect users from cyber-attacks.
The bill has been met with some opposition from the public, with some arguing that it will stifle innovation in the industry. However, proponents of the bill argue that it is necessary to protect investors and reduce speculation in the market.
Stage One Officially Approved
The passing of the first stage of the bill is a significant milestone for South Korea, as it is the first country in the region to introduce such legislation. This follows recent moves by the US and UK to introduce similar legislation.
The bill is expected to pass the second stage later this year, with the final stage expected to be approved in 2021. Once the bill is fully implemented, it will give the FSC further authority to regulate the industry and protect investors from criminal activity.
In addition to the bill, South Korea is also exploring the possibility of introducing its own digital currency, the S-Coin. The currency is expected to be used as a form of payment and will be backed by the Bank of Korea. The launch date for the S-Coin has not yet been announced.