South Korea Seeks Help From Japan, China to Regulate Cryptocurrency in Asia

South Korea Seeks Help From Japan, China to Regulate Cryptocurrency in Asia

Xu Wei

Date: Thu, 01/11/2018 - 20:11 / source:Yicai
South Korea Seeks Help From Japan, China to Regulate Cryptocurrency in Asia
South Korea Seeks Help From Japan, China to Regulate Cryptocurrency in Asia

(Yicai Global) Jan. 11 -- South Korea is looking to partner up with China and Japan to regulate virtual currency transactions.

Financial leaders from the three countries met in South Korea in December to exchange views on the matter, the host country’s Yonhap News Agency reported, quoting Chairman of the Financial Services Commission Choi Jong Ku  as saying at a press briefing on Jan. 8.

Speculative virtual currency investment is becoming a frenzy in Asia, it’s irrational, Choi said, adding that “cryptocurrencies cannot serve as a means of payment.”

China, Japan and South Korea occupy a significant share of the world’s virtual money market, if the three do set up a joint regulatory system, digital currencies worldwide could take a hit.

South Korea is home to the globe’s largest private bitcoin exchange, with more than two million people investing in virtual currencies, such as bitcoin and ethereum, in hope of raking in huge profits. Despite the popularity of cryptocurrency, such transactions are completely unregulated and investors’ interests are not protected.

The Korea Financial Intelligence Unit and the Financial Supervisory Service, the country’s integrated supervisory authorities, are investigating digital currency trading systems at six commercial banks in order to raise the bar for transactions aimed at deterring money laundering and punishing related crimes.

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Keywords: South Korea, Japan, Cryptocurrency, Bitcoin, Ethereum