South Korea Considers Bitlicense-Style System for Cryptocurrency Exchanges

 The South Korean government is considering introducing an approval system for cryptocurrency exchanges based on the Bitlicense model, developed by the New York State Department of Financial Services. 

 

                                              Bitlicense Comes to Korea

The South Korean regulators are considering introducing an approval system for cryptocurrency exchanges, Business Korea reported. An official participating in the government’s virtual currency task force, which has been discussing the matter, revealed on Monday: 

                                                                                                                                                      

 The State of New York allows exchanges to trade cryptocurrencies only when they have obtained a charter or a license, known as Bitlicense, from the New York State Department of Financial Services (NYSDFS). Its restrictive controls and capital requirements have led to only 6 firms being approved so far. Circle Internet Financial, XRP II, Coinbase Inc, and Bitflyer USA have received Bitlicenses, while charters were granted to Gemini Trust Company and Itbit Trust Company. 

 “When the country accepts the model from New York, it will be able to bring cryptocurrencies into the institutional system as well as supervise the market in an orderly manner, according to the government,” the news outlet conveyed. While emphasizing that the final decision will likely be made after local elections in June, the publication asserted:

                                         No Need for Extreme Measures

The South Korean government began announcing regulatory measures for cryptocurrencies in the middle of December. On December 15, bitcoin was trading at over 20.2 million won (~USD$18,500), according to data from one of the country’s largest cryptocurrency exchanges by volume, Bithumb.