In fact, the market crashed at first because everyone thought that South Korea will ban all crypto trading. Luckily, this didn’t turn out to be true and South Korea decided to only ban anonymous crypto trading.
South Korea Approval System
It looks like South Korea is still searching for a way to regulate the highly volatile market without affecting its citizens too much. The solution that South Korea plans to use is to implement a cryptocurrency exchange approval system that works similar to New York’s Bitlicense model.
We should mention that South Korea will not implement this approval system until June. However, let’s go over the approval system and see what we can expect to see from it.
Basically, the new approval system will only allow traders who applied for licenses to perform transactions. These licenses will be known as “Bitlicense” and they are currently being released by the New York State’s Department of Financial Services.
Furthermore, the system will feature detailed reporting regulations. Not only that, but the system will also have a minimum capital requirements and this is quite important because it reduces the number of companies and cryptocurrencies which are eligible for a trading license.
If South Korea does decide to introduce this new approval system, cryptocurrency trading will become easier to be accessed by institutional frameworks and the government will also have an easier time regulating it.
Nonetheless, adopting the new approval system is an important decision that South Korea has to make, and it will surely affect the entire cryptocurrency market. The only thing we can do right now is to wait and see what South Korea does.
The post South Korea Might Adopt License Approval System for Cryptocurrency Exchanges appeared first on News4C.