South Korea might see relaxation in cryptocurrency regulations as the newly appointed governor of the Financial Supervisory Service (FSS) looks forward to revise some of the regulations imposed on the cryptocurrency market.
Yoon Suk-heun, a visiting professor of economics at Seoul National University was nominated by South Korean Financial Services Commission (FSC) to be the chief of FSS. Yoon is seen as a “reform-minded” activist who might ease some of the strict crypto regulations including the ban on ICOs.
The appointment was approved by South Korean President Moon Jae. In an interview with reporters on Sunday, he said:
“Regarding cryptocurrencies, there are some positive aspects … The FSS will collaborate when the FSC when an inspection on policies and financial institutions has different configurations associated with different scopes. FSC inspects policies, while the FFS examines and supervises financial institutions but with the oversight of the FSC.”
In September last year, the FSS implemented a ban on all Initial Coin Offerings in the country. In January 2018, FSS banned anonymous cryptocurrency trading and mandated the use of trading accounts with real names.
The ban on anonymous trading accounts was expected to end issues like money laundering and encourage KYC-enabled practices in the industry however the move backfired.
“Markets expected the introduction of the real-name registration system would have been helpful to revive trading, but these efforts failed as local banks were reluctant to invite more crypto traders,” a Bithumb official told the Korea Times.
Yoon, when enquired by reporters, did not elaborate his plans regarding the changes in crypto regulations.
“There are a lot of issues that need to be addressed and reviewed. We can figure them out but gradually,” he stated.
The appointment and the new softened stance comes just at the right time when a group of lawmakers led by a politician from Korea’s ruling party are drafting a bill that pushes the legalization of ICOs in the country.
The new FSS governor will begin his service from Tuesday, May 8. He will also be holding a press conference with local and international media and the topic of cryptocurrencies and ICOs is most likely to come under discussion again.
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