Legislation outlining the regulatory framework for digital currencies (including Bitcoin) in South Korea has been introduced by lawmaker Park Yong-jin.
It defines digital currency, introduces five classifications of digital currency handlers and specifies requirements and prohibited activities. Its main purpose is to create a regulatory framework for digital currencies in order to "maintain healthy market order and protect users".
The proposed five classifications of digital currency handlers:
- Virtual currency traders – those selling goods 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.
"As interests in virtual currencies such as bitcoin and ethereum have soared there is no clear definition of virtual currencies or restrictions on those who can sell virtual currencies." -Yong-jin
Virtual currency is thus defined as "an instrument of exchange" or an "electronic store of value". It also clearly distinguishes virtual currency from the FIAT currency.
...and there is much more to it! Read the full story here: https://news.bitcoin.com/bitcoin-regulation-act-introduced-south-korea/
What do you think? Is this kind of regulation needed in certain situations? Or is it always a "bad thing"?
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