South Korea’s crypto market is braced for another round of possibly limiting guidelines– with a monetary regulative chief hinting that, fresh from subjecting crypto exchanges to a few of the most limiting guidelines worldwide, the decentralized financing (DeFi) and non-fungible token (NFT) sectors were next in line.
In an interview with Maeil Kyungjae, the head of the Financial Intelligence Unit ( FIU) Kim Jeong-gak stated that South Korea was watching on upcoming future suggestions about NFTs and DeFi from the Financial Action Task Force(FATF), including that the country would pursue “global consistency.”
But he likewise included:
” We will think about how to [regulate the two sectors] with associated ministries and show these [decisions] with [amended] monetary law.”
Kim likewise fired out something of a cautioning to the crypto exchange sector, currently reeling from a crackdown that has actually left just 4 trading platforms trading coins for fiat KRW. Kim specified that the FIU meant to “handle and monitor virtual currency exchanges under the exact same rigorous requirements as banks.”
He declared that cash laundering in the cryptoasset market was most likely to happen than in extremely managed banks such as banks.
He stated that regulators “require to focus more on” cryptoasset organization operators and would “carefully keep track of” companies moving forward.
So far, simply 2 exchanges– the country’s very first trading platform Korbit and the marketplace leader Upbit, have actually gotten complete operating licenses from the FIU, with applications from competitors Bithumb and Coinone still under evaluation. The rest of the country’s once-burgeoning exchanges market has actually been either required to close or use crypto-only trading.
Critics state the federal government and regulators have actually permitted a four-company “monopoly” or “oligopoly” to emerge, exterminating appealing, ingenious companies along the method.
But Kim brushed off such criticism, apparently mentioning:
” Concern about monopolies is a phenomenon that occurs naturally throughout the procedure of executing a brand-new system.”