South Korea to regulate cryptocurrency exchanges like banks
South Korea wants to regulate cryptocurrency exchanges like commercial banks to prevent the use of digital currencies for illicit activities. The new framework will add legitimacy to the cryptocurrency sector as a whole. Great news says us at BTCX.
The Korea Financial Intelligence Unit (KFIU) in South Korea has decided to regulate cryptocurrency exchanges like
commercial banks. This action allows them to implement strict
anti-money laundering policies that prevent criminals from using digital currencies to finance
terrorism and other illicit operations.
In order to effectively prevent funding of illegal operations – KFIU decided that cryptocurrency exchanges must be regulated as proper financial institutions. The financial authorities would thus be able to examine and monitor suspicious transactions. The monitoring will reportedly be conducted with transparency and without compromising the anonymity cryptocurrencies offer.
What does this mean?
According to CNN, this decision will have a positive impact to cryptocurrency markets around the world. With cryptocurrency exchanges being recognized as proper financial institutions – using the same regulatory framework as traditional banks – the South Korean government has recognized their legitimacy. If other countries decides to follow their initiative, this may be the first step towards increased approval of digital currencies.