Image Image Image Image Image Image Image Image Image Image Image Image

| January 20, 2019

Scroll to top


Bureau Archives -

South Korea’s Crypto Regulation Shakeup: New Bureau, Agreement With China

July 23, 2018 |

South Korea’s Crypto Regulation Shakeup: New Bureau, Agreement With China

South Korea’s top financial regulator is planning a major organizational restructuring that includes introducing some new crypto policy initiatives. A bureau dedicated to financial innovations that include cryptocurrencies is being set up. In addition, an agreement with Chinese authorities relating to crypto and initial coin offerings has also been reached. Meanwhile, the contracts between Korean crypto exchanges and banks for real-name accounts will expire this month.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Major Organizational Restructuring

South Korea’s Crypto Regulation Shakeup: New Bureau, Agreement With China
FSC Chairman Choi Jong-ku.

Last week South Korea’s top financial regulator, the Financial Services Commission (FSC), said it will undergo a “major organizational restructuring.” As part of the plans, it “will establish a department exclusively for policymaking initiatives in the nation’s blockchain industry,” the Korea Times described.

The new department, called the Financial Innovation Bureau, will have a two-year lifespan. Its establishment is part of the FSC’s “restructuring plan to lead financial innovation in the coming Fourth Industrial Revolution era,” the news outlet explained, adding that “it will help nurture Korea’s fintech industry, mostly covering the nation’s cryptocurrencies and blockchain technology.”

Citing that the Commission is planning “a major organizational reshuffle to better protect financial consumers,” an FSC official elaborated:

The new Financial Innovation Bureau will also be tasked with policy initiatives for financial innovation, such as innovating financial services using fintech or big data, and responses to new developments and challenges such as cryptocurrencies.

Agreement with China

South Korea’s Crypto Regulation Shakeup: New Bureau, Agreement With China
Yoo Kwang-yeol.

Chosun reported last week that First Senior Deputy Governor of South Korea’s Financial Supervisory Service (FSS), Yoo Kwang-yeol, recently met with the Deputy Chairman of the Insurance Supervision and Management Committee of the Bank of China. They agreed to integrate the Financial Supervisory Cooperation Agreement.

The initiative between the two countries began as the FSS reviewed the process of establishing foreign branches for Korean insurance companies in China. “The two organizations have decided to expand their monitoring experience and information exchange on internal control of financial institutions and anti-money laundering,” the publication details, adding:

In a meeting with the China Securities Regulatory Commission, a cooperative channel was set up, including the establishment of a working-level hotline … it will jointly respond to new emerging global supervisory and regulatory issues such as international financial regulation, virtual currency, ICO [initial coin offering] and fintech.

This was not the first time the two governments discussed collaborating on crypto measures; earlier this year reported that the South Korean regulators were seeking to collaborate with China and Japan. In February, the country’s Minister of Strategy and Finance, Kim Dong-yeon, met with the governor of the People’s Bank of China to discuss economic issues of both countries as well as cryptocurrency policies.

Tax Benefits for Blockchain Companies

South Korea’s Crypto Regulation Shakeup: New Bureau, Agreement With ChinaAt the meeting of the ministers on economic policies, the government decided on a plan to revitalize the country’s investment incentive system, the Korea Times reported this week. Blockchain was added to the list of emerging technologies eligible for tax benefits. “In order to alleviate the investment burden of companies that use new technology,” the publication explained that the government has decided to “apply the tax benefits to blockchain” technology, noting:

Blockchain-based information security technology, quantum computing (advanced computer technology that operates on the principle of quantum mechanics), and commercialization facilities to the range of new growth technologies [are] to be subject to tax exemption under the Tax Exemption Restriction Act (157 technologies in 11 existing sectors).

Real-Name Account Contracts Expiring

South Korea’s Crypto Regulation Shakeup: New Bureau, Agreement With ChinaThe South Korean government implemented the real-name system for cryptocurrency trading accounts at the end of January. According to Money Today, the contracts between crypto exchanges and commercial banks for the issuance of real-name accounts must be renewed “every six months to encourage virtual currency trading sites to continue their anti-money laundering efforts.” Existing contracts will expire at the end of this month.

So far, only the country’s four biggest crypto exchanges have real-name account contracts. While Upbit, Bithumb, Coinone, and Korbit can issue real-name accounts for their customers, other exchanges continue to use corporate accounts. In addition, only three banks currently offer real-name account services despite six of them having the capability to do so. The publication elaborated:

Currently, Bithumb has contracts with Shinhan Bank and Nonghyup Bank. Upbit is with IBK, Coinone with Nonghyup Bank, and Korbit with Shinhan Bank.

At the time of contract renewals, Coinplug may become the fifth trading platform to have a real-name contract with a bank, the news outlet detailed, citing that the company “has been in talks with Shinhan Bank since the beginning of this year.”

What do you think of South Korea’s crypto initiatives? Let us know in the comments section below.

Images courtesy of Shutterstock and Chosun.

Need to calculate your bitcoin holdings? Check our tools section.

The post South Korea’s Crypto Regulation Shakeup: New Bureau, Agreement With China appeared first on Bitcoin News.

Bitcoin News

L.A. Times suspends Beijing bureau chief while it investigates sexual misconduct allegation

May 16, 2018 |

The Los Angeles Times suspended Beijing Bureau Chief Jonathan Kaiman on Tuesday and has launched an investigation into an allegation of sexual misconduct.

On Monday, former Beijing-based journalist Felicia Sonmez sent a letter to the Foreign Correspondents’ Club of China detailing “problematic…

L.A. Times – Business

Mick Mulvaney gives big pay raises to his hires at Consumer Financial Protection Bureau

April 5, 2018 |

Mick Mulvaney, President Trump’s appointee to oversee the Consumer Financial Protection Bureau, has given big pay raises to the deputies he has hired to help him run the agency, according to salary records.

Mulvaney has hired at least eight political appointees since he took over the bureau in…

L.A. Times – Business

Consumer Financial Protection Bureau appears to shed its aggressive reputation

February 5, 2018 |

The Consumer Financial Protection Bureau last year sued four lenders affiliated with a Northern California Native American tribe, alleging their costly loans violated interest rate caps in more than a dozen states.

The enforcement action came amid a probe into yet another high-interest lender,…

L.A. Times – Business

Mulvaney’s first funding request for the Consumer Financial Protection Bureau: zero

January 18, 2018 |

In his first quarterly funding request as acting director of the Consumer Financial Protection Bureau, Mick Mulvaney is asking for nothing.

“This letter is to inform you that for the Second Quarter of Fiscal Year 2018, the Bureau is requesting $ 0,” he wrote Wednesday to Janet L. Yellen, chair of…

L.A. Times – Business

Mick Mulvaney takes first step toward overhauling Consumer Financial Protection Bureau

January 18, 2018 |

Mick Mulvaney once called the Consumer Financial Protection Bureau a “joke … in a sad, sick kind of way.”

Now, as its acting director, he’s in a position to change it.

On Wednesday, Mulvaney announced he was launching a review of the entire operation of the consumer watchdog agency created in…

L.A. Times – Business

Better Business Bureau Warns About LaVar Ball’s Company

January 8, 2018 |

The father of one of the UCLA students who was arrested and detained for shoplifting in China last year now has his own issues to deal with stateside. TMZ Sports reports the Better Business Bureau has slammed Big Baller Brand, an apparel company launched by LaVar Ball, with an “F,…

Richard Cordray is resigning as Consumer Financial Protection Bureau chief

November 16, 2017 |

The nation’s top consumer financial watchdog will step down this month, sparking concern from advocacy groups — and relief from financial firms — that the federal agency he has led since 2012 will soon be much friendlier to the industry it polices.

Richard Cordray announced his impending resignation…

L.A. Times – Business

Treasury report slams consumer bureau in latest salvo over arbitration rule

October 23, 2017 |

The Treasury Department on Monday issued a report critical of a pending federal rule that would limit the use of forced arbitration by financial firms, calling it flawed and a giveaway to class-action attorneys.

The report is the latest salvo in an ongoing fight over the regulation, opposed by…

L.A. Times – Business

Consumer protection bureau cracks down on payday lenders with tough nationwide regulations

October 5, 2017 |

The nation’s top consumer financial watchdog on Thursday issued tough nationwide regulations on payday and other short-term loans, aiming to prevent lenders from taking advantage of cash-strapped Americans.

The long-awaited rules from the Consumer Financial Protection Bureau — the first broad federal…

L.A. Times – Business