Topic: [2017-10-27] Bitcoin to be regulated as commodity in South Korea (Read 2538 times)
The head of the Central Bank of South Korea is clearly confused in terms of the crypto currency. Crypto currency, because it is a measure of value, can not be considered as a commodity and regulated as a normal commodity. If they consider the crypto currency as a regular commodity, then further complications may arise there.
October 27, 2017, 11:45:09 AM
The head of South Korea’s central bank stated at a parliamentary audit that Bitcoin will not be regulated as a currency, but as a commodity.
During the National Assembly audit of the Bank of Korea (BOK), governor Lee Joo-yeol said: “it is difficult to look at [virtual currencies] as money by [definition] of Bank of International Settlements (BIS),” according to Yonhap News.
Lee also expressed the central bank’s current official stance on the regulation of cryptos:
“Regulation (of virtual currencies) is appropriate because it is regarded as a commodity. It [cannot be] regulated at the level of a currency.”
Despite this, Lee revealed that the central bank is not launching regulation soon: “It is not a situation for the Bank of Korea to take action at present.”
Last year, South Korea launched a digital currency task force to research regulatory and licensing parameters for bitcoin and bitcoin exchanges. CCN reported earlier in June that the participants ‘failed to agree on whether virtual currencies should be included in systems right now and how the systems will work if they are included.”
The Financial Supervisory Service (FSS), the country’s financial regulator, banned initial coin offerings (ICOs) guided by the task force, leading to fears of a crackdown on the local cryptocurrency trading market, similar to what took place in China.
SOURCE: https://ibsintelligence.com/bitcoin-regulated-commodity-south-korea/
During the National Assembly audit of the Bank of Korea (BOK), governor Lee Joo-yeol said: “it is difficult to look at [virtual currencies] as money by [definition] of Bank of International Settlements (BIS),” according to Yonhap News.
Lee also expressed the central bank’s current official stance on the regulation of cryptos:
“Regulation (of virtual currencies) is appropriate because it is regarded as a commodity. It [cannot be] regulated at the level of a currency.”
Despite this, Lee revealed that the central bank is not launching regulation soon: “It is not a situation for the Bank of Korea to take action at present.”
Last year, South Korea launched a digital currency task force to research regulatory and licensing parameters for bitcoin and bitcoin exchanges. CCN reported earlier in June that the participants ‘failed to agree on whether virtual currencies should be included in systems right now and how the systems will work if they are included.”
The Financial Supervisory Service (FSS), the country’s financial regulator, banned initial coin offerings (ICOs) guided by the task force, leading to fears of a crackdown on the local cryptocurrency trading market, similar to what took place in China.
SOURCE: https://ibsintelligence.com/bitcoin-regulated-commodity-south-korea/
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