‘Bitcoin Regulation Act’ Introduced
'Bitcoin Regulation Act' Introduced in South Korea
Rep. Park Yong–jin
Korean Democratic Party lawgiver Park Yong-jin declared last week that he has introduced AN modification for the Electronic monetary dealings Act. Its main purpose is to make a regulative framework for digital currencies so as to “maintain healthy order and shield users,” Inews24 reported . Business peninsula calls this modification the “Bitcoin Regulation Act.”
“As interests in virtual currencies like bitcoin and ethereum have soared,” Park same “there isn't any clear definition of virtual currencies or restrictions on those that will sell virtual currencies.” He 1st declared that he would introduce this legislation back in Gregorian calendar month. Business peninsula wrote:
The Bitcoin Regulation Act is scheduled for a daily session of the National Assembly in September with a growing discussion predicted.
Definitions and Classifications
'Bitcoin Regulation Act' Introduced in South KoreaIn this modification, virtual currency is outlined as “an instrument of exchange or AN electronic store important ,” reported Inews24. It conjointly distinguishes virtual currency from “real” currency. The modification proposes 5 classifications of digital currency handlers with the subsequent definitions.
“Virtual currency traders” – those commercialism merchandise or services in exchange for digital currency.
“Virtual currency dealers” – those operating a market for the sale of virtual currencies such as exchanges.
“Virtual currency brokers” – those intermediating or arranging the sale of digital currency.
“Virtual currency issuers” – those offering systems to create and issue digital currencies, and
“Virtual currency managers” – those storing or managing digital currencies for others.
Requirements and Prohibited Activities
The revised legislation requires all digital currency handlers “to have 500 million won or more in capital and receive approval from the Financial Supervisory Commission,” detailed Business Korea.
'Bitcoin Regulation Act' Introduced in South KoreaThe amendment also mandates customer funds be deposited at a separate institution with insurance, or some form of payment guarantee in order to protect customers, the publication added.
The legislation prohibits several specific digital currency-related activities such as their sale and brokering through door-to-door and multi-level marketing schemes. It also strictly prohibits illegal acts involving digital currencies, such as market price manipulation and money laundering. Violations can carry a prison sentence of up to five years or a fine of up to 50 million won, Business Korea detailed.