Korea’s lawmakers should approve the country’s first ever cryptocurrency bill as soon as possible because thefts are becoming a serious problem as the virtual coin market continues to grow, a high ranking official at the Financial Services Commission (FSC) told Bloomberg on Thursday. The law, proposed by several parliament members (MPs), has been waiting for vote since March.
Hong Seong-ki, who leads the virtual currency response team at FSC, noted that the proposed law will give FSC authority to directly supervise crypto exchanges. The regulator will use its new powers to focus on policing the exchanges rather than promoting their growth, Seong-ki outlined.
According to FSC crypto head, one of the most important issues is related to investor protection as last month two Korean crypto exchanges suffered major hack attacks: Bithumb lost an estimated $31 million while Coinrail theft reached around $40 million.
“While crypto markets have seen rapid growth, such trading platforms don’t seem to be well-enough prepared in terms of security. We’re trying to legislate the most urgent and important things first, aiming for money-laundering prevention and investor protection. The bill should be passed as soon as possible”, Seong-ki said.
Putting the crypto exchanges in the legal framework will not mean that Korea wants to legitimize the sector, Seong-ki noted. Unlike initial coin offerings (ICOs), cryptocurrency trading is allowed in Korea.
In September last year the country officially prohibited one of the most popular method of investing money in cryptos, the virtual currency fundraising model of ICOs. Several MPs want the Parliament to introduce ICO rules along with the cryptocurrency bill and thus lift the ban.
“I wouldn’t recommend putting money in cryptocurrencies,” Seong-ki said as he was asked by Bloomberg about his personal view towards virtual coins.
Earlier this month, FSC revealed a new structure in a bid to foresee market changes and safeguard investors from the challenges that new financial technologies like cryptocurrencies pose. The organizational reshuffle includes a new body that will issue recommendations related to virtual coins.
This article appeared first on Cryptovest
