South Korean Official Calls For Global Crypto Regulations

ICO News, News, Regulation | September 10, 2018 By:

Yoon Suk-heun, governor of South Korea’s Financial Supervisory Service (FSS), has urged regulators from 14 other countries to jointly draft international regulations for cryptocurrencies and initial coin offerings (ICO).

During the 20th Integrated Financial Supervisors Conference (IFSC) in Seoul last week, Yoon urged the need for international coordination, including information sharing among countries, in preparation for the risk of money laundering that could rise as new financial products or services emerge. The event was attended by officials from 14 countries, including Japan, Australia, Singapore, Canada, the UK, Germany, Netherlands, Austria, Switzerland, Norway, and Sweden.

“In the case of cryptocurrencies and initial coin offerings, national rules would only lead to profits because such transactions are made beyond borders,” Yoon said. “So we must form a global regulatory system.”

The FSS governor added “it would be better to create an international discipline system” rather than each country responding individually.

“The aim is to calm overheated speculation and prevent illegal activities against new risks associated with virtual currency,” said Yoon. “We need to create an international discipline system, which can only generate regulatory gains between countries.”

He also said that crypto regulation must include a consumer protection mechanism and internal control of finance companies “to safely manage customer assets and maintain sound management.”

In January of this year, the South Korean government began a real-name trading system for cryptocurrencies, banning the use of anonymous bank accounts in transactions to prevent digital currencies being used for money laundering and other illegal activities.