South Korea’s financial supervision is proceeding against unregistered foreign crypto bonds
- South Korea’s financial supervision FIU begins sanctions against unregistered foreign crypto exchanges.
- It exacerbates the rules for foreign crypto companies and at the same time checks its own CBDC pilot project.
The Korean financial supervisory authority (FIU) is on the road quickly. The foreign crypto bits Bitmex, Kucoin, Coinw, Bitunix, KCEX and others may be facing out. The reason for this is that it is loud apparently were caught working in South Korea without official approval.
The FIU confirmed that they had started to sanction these stock exchanges. This is not just a warning, but also sensitive punishments that can go to their Korean websites until the access to the complete blocking of access, which means a ban on operating.
The FIU wants to work with the Korea Communications Standards Commission, a facility that is considered a kind of digital security officer in the Asian country. The aim is to protect citizens from companies that do not prove a legal basis for their company and therefore cannot ensure investor protection.
South Korea drives CBDC ahead
How CNF reported wants to start South Korea in April with a pilot program for a digital central bank currency (CBDC).
There will be around 100,000 participants in the financial experiment. You can shop in approved shops, convert your bank credit into digital tokens and test the real-time payment system.
South Korea does not want to fall behind in global competition, since many other countries also experiment with their own versions of digital currencies.
Contrary views on the role of Bitcoin
However, not all types of cryptocurrencies were welcomed in a friendly manner. The Bank of Korea considers Bitcoin to be unpredictable. On March 17, she said that Bitcoin does not meet the requirements for inclusion in the foreign currency reserves in her country. The course hops up and down like a yo-yo, which explains the facts simply but aptly. The central bank added that this view corresponds to that of the International Monetary Fund IMF.
Strangely enough, only two weeks earlier, on March 5, some officials and finance gurus represented the opposite. They advised the government to think about adding Bitcoin to the national reserve and perhaps to publish a stable coin covered by the Won. The goal? The country must keep a strong negotiating position in the increasingly competitive global digital economy.
Imagine a large family that debates investments: a member wants to live for rent, another wants to buy a house, and another one even suggests living on a boat. The crypto debate is currently running in Korea-colorful, full of opinions, but not yet united.
A normal day: crack and dream of digital fame
This situation shows how complicated the government’s attitude is to deal with the crypto world. On the one hand, she would like to protect its citizens from potential fraud and irresponsible services. On the other hand, one is aware that this technology has the power to fundamentally change the financial system as a whole.
The official approach of the FIU indicates that Korea will not let foreign trade in its territory run lightly. But with the start of the CBDC tests and the debate about Bitcoin as a reserve currency, it is clear that it is not just about bans. It is about finding the balance between regulation and progress.
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