South Korea strengthens oversight of digital assets

20.04.2021 |

A number of regulators in South Korea have agreed to work together to control transactions in digital assets. The authorities were forced to develop a joint work plan by the increase in bitcoin prices on online exchanges.

According to some officials, cryptocurrencies are increasingly being used in illegal financial transactions and money laundering. Although independent studies say the exact opposite is true, regulators have difficulty accepting this fact because they have no complete control over the digital asset phenomenon itself.

Earlier, the Korean authorities required cryptocurrency companies to be licensed and enter information about themselves in a special register. Also, all organizations of the industry will have to develop a monitoring system to track illegal transactions made with digital assets.

All this seems a bit excessive, but it allows to legalize the use of cryptocurrencies as an investment asset and, in the long term, as a means of payment.