Legal Framework: form of acceptance of the Cryptocurrencies.
The cryptocurrencies have grown at a dizzying pace, as they allow transactions to be made for sale, nevertheless; their prices fluctuate constantly, as various factors associated with uncertainty, vulnerability, risks, hacker, among others, come into play in this process. In this sense, regulations are being established in various countries that favor the avoidance of capital flight, illegal operations, among others.
In this way, in a recent statement, the National Assembly of South Korea revealed the intentions to lift the veto imposed in recent months on the ICOs (Initial Offers in Cryptocurrencies). According to BusinessKorea, the National Assembly will be willing to adjust the legislative framework around digital commerce with cryptocurrencies, providing protection regulations for investors and operators.
According to the spokespersons of South Korea: “We will also establish a legal basis for the cryptocurrency trade, including the permission of the ICOs, through the Standing Committee of the National Assembly.” Likewise, they will be issuing more policies that support and promote the development of applications and solutions based on Blockchain technology.
In the same vein, exchange houses in South Korea have also been subject to strict regulations, ranging from tax declaration policies to identity verification regulations or even closure.
Similarly, one of South Korea’s largest cryptocurrency exchange platforms, Bithumb, has announced that it will “gradually reduce the withdrawal limit for any account that has not been converted to real-name accounts, alleging risks of financial crimes” .
This announcement follows closely the decision to block trade in 11 countries, including North Korea, Iran and Iraq, in addition to strengthening the process of verification of accounts for foreign users. “We have decided to gradually reduce the amounts withdrawn in Korean won because we are concerned that bank accounts for withdrawals not converted into real-name accounts may become targets for various financial crimes.”
The exchange says it is the first cryptocurrency exchange platform to have “followed all the provisions of regulations 5-5-7 of the within the electronic banking supervision regulations”, chapter 32, section 8, paragraph 2. Regulation 5-5-7 recommends that 5% of the total workforce of a financial organization be IT specialists, 5% of which are dedicated to information security, and 7% of the company’s total budget. use for privacy.
Many crypto-market analysts are in favor of the regulation of cryptocurrencies and a large number of them have applauded Carney’s last speech. Dr. Jeppe Stokholm, partner and legal advisor of Black Swan, a VC firm in Zürich, Switzerland, agrees with Carney: “The time has come to submit the cryptoecosystem to the same standards as the rest of the financial system.
I am not afraid of the financial regulation of cryptocurrencies. Instead, I expect it to be executed as soon as possible to achieve fair competition and a secure market. “
So, in my opinion, most countries find that regulation is a means of legalizing financial transactions of cryptocurrencies, which undermines the basic principles of these virtual currencies that are produced by a public network in Instead of any government, it uses encryption to ensure that payments are sent and received securely and is not governed by a Central Bank.
It is a technology whose nature is based on a network (like the Internet itself) with a non-centralized approach. In the future, it seems that regulations will prevail in the financial market of cryptocurrencies.
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