As bitcoin and digital currencies grow in popularity in South Korea, financial regulators have launched a digital currency task force to focus on regulatory and licensing parameters for bitcoin exchanges.
In a meeting last week, the first of many over the coming months, the task force agreed that the bitcoin and digital currency sector needs to be regulated, according to regional publication Korea Joongang Daily.
The Financial Services Commission (FSC) convened the meeting, besides launching the task force, and saw other authorities including the Bank of Korea, the country’s central bank, the Ministry of Strategy and Finance and the Financial Supervisory Service. As things stand, the Ministry of Science, ICT and Future Planning is tasked to oversee the registration of bitcoin exchanges without any regulatory guidelines. The current structure is likely to change by Q1 2017.
As for the regulatory approach itself, the taskforce will refer to existing legal frameworks in the United States – New York state’s BitLicense is a notable example – and Japan, where a recent bill was passed by the