The South Korean financial regulator is set to soften its cryptocurrency regulations. This is after the regulator hinted that they may shift the classification of virtual currencies from being non-financial assets to financial assets.
Korea Times quoted: “It’s almost certain that cryptocurrencies will be classified as assets and the main issue will be centred on how to regulate them properly under the unified frame that will be agreed upon between G-20 nations. Given the current stance, this isn’t good, but we will step up efforts to improve things” according to FSS (Financial Supervisory Service) which is under the mandate of the Financial Services Commission, South Korea’s financial regulator.
There has been heightened belief and positive outlook of the cryptocurrency market in South Korea after the FSS welcomed a new governor, Yoon Suk-heun who indicated that digital currencies have some positive aspects.
If the FSS relaxes its regulations, the cryptocurrency industry will receive a major boost.
South Korea’s crypto market is one of biggest in the world, such softening of regulations will likely bring many of investors back to the market.
The Bank of Korea has also indicated that a task force has been out since January looking at the possibility of the bank issuing its own digital currency.