South Korean regulators and officials are likely to relax their approach to regulating cryptocurrencies, starting with classifying them as ‘financial assets’.
There’s a July deadline looming for G20 nations after policymakers called for recommendations for regulating cryptocurrencies, seen as ‘financial assets’ by the economic leaders from the world’s twenty largest economies.
South Korea’s regulators, however, have previously classified cryptocurrencies as ‘non-financial assets’ due to their speculative nature. It is becoming increasingly apparent that Korea is likely to shift its stance with a friendlier policy as the country’s financial watchdog promises to “improve things” on the regulatory front.
As reported by the Korea Times, the Financial Supervisory Service (FSS) – Korea’s financial watchdog – acknowledged the G20’s unified stance meant that Korea would have to change its policy, stating:
“It’s almost certain that cryptocurrencies will be classified as assets and the main issue will be centered on how to regulate them properly under the unified frame that will be agreed upon between G-20 nations. Given the current stance [in Korea], this isn’t good, but we will step up efforts to improve things.”
The statement falls in line with recent remarks from Yoon Suk-heun, the new governor of the FSS, who said that an internal study on cryptocurrencies identified ‘positive aspects’ that could lead to relaxed regulations in the near future.
“Regarding cryptocurrencies, there are some positive aspects…” FSS chief Yoon said during his ceremonial swear-in last week. Notably, the FSS was the same authority to carry out a ban order that completely curtailed initial coin offerings (ICOs) in the country in September 2017.
These positive developments for the cryptocurrency space come at a time within weeks of a legislative effort by Korean lawmakers who are drafting a bill to legalize the launch of new cryptocurrencies and ICOs in the country.