South Korean Regulator Says Crypto Investors Are Covered by the Revised Law
- The country's top financial regulator warns that they cannot protect cryptocurrency users from volatility.
On Wednesday, the South Korean financial regulator announced that domestic cryptocurrency investors would be protected under the revised law. According to The Korea Herald, the Financial Services Commission (FSC) clarified that only assets held in registered crypto exchanges would be 'naturally protected' by the ruling.
Eun Sung-soo, Chairman of the FSC, told reporters during a speech at 2021 Korea Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term Week in Seoul that withdrawals performed through such digital asset exchanges registered adequately before the watchdog would be under the supervision of the amended “Act on Reporting and Using Specified Financial Transaction Information.”
“Only crypto exchanges that have adopted real-name bank accounts and granted Information Security Management System certification from the Korea Internet & Security Agency will qualify for the application,” Sung-soo commented.
Furthermore, he urged domestic investors to deal with crypto companies that abide by the new set of rules, warning that the FSC could shut down these firms if they do not comply successfully. “The 200 crypto exchanges here could all shut down if they are not registered by September,” the FSC’s Chairman said during a meeting held at South Korea’s National Assembly last month.
FSC Cannot Protect Users from Market’s Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term
But, the head of the country’s top financial regulator also pointed out that his office cannot protect consumers on the volatile nature of the cryptocurrency markets. “What I want to make clear is that cryptocurrency volatility is not a subject of our protection,” Eun said. Additionally, he added that crypto-related crimes such as frauds or scams are only handled by the police, not the financial watchdog.
As the South Korean crypto exchanges are to file for regulatory approval by September 25, 2021, the FSC has been reportedly summoning major domestic banks to provide further information on the status of their deals with such cryptocurrency firms. The revised act asks all exchanges to maintain banking accounts under each customer’s name registered on the platform.
On Wednesday, the South Korean financial regulator announced that domestic cryptocurrency investors would be protected under the revised law. According to The Korea Herald, the Financial Services Commission (FSC) clarified that only assets held in registered crypto exchanges would be 'naturally protected' by the ruling.
Eun Sung-soo, Chairman of the FSC, told reporters during a speech at 2021 Korea Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term Week in Seoul that withdrawals performed through such digital asset exchanges registered adequately before the watchdog would be under the supervision of the amended “Act on Reporting and Using Specified Financial Transaction Information.”
“Only crypto exchanges that have adopted real-name bank accounts and granted Information Security Management System certification from the Korea Internet & Security Agency will qualify for the application,” Sung-soo commented.
Furthermore, he urged domestic investors to deal with crypto companies that abide by the new set of rules, warning that the FSC could shut down these firms if they do not comply successfully. “The 200 crypto exchanges here could all shut down if they are not registered by September,” the FSC’s Chairman said during a meeting held at South Korea’s National Assembly last month.
FSC Cannot Protect Users from Market’s Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term
But, the head of the country’s top financial regulator also pointed out that his office cannot protect consumers on the volatile nature of the cryptocurrency markets. “What I want to make clear is that cryptocurrency volatility is not a subject of our protection,” Eun said. Additionally, he added that crypto-related crimes such as frauds or scams are only handled by the police, not the financial watchdog.
As the South Korean crypto exchanges are to file for regulatory approval by September 25, 2021, the FSC has been reportedly summoning major domestic banks to provide further information on the status of their deals with such cryptocurrency firms. The revised act asks all exchanges to maintain banking accounts under each customer’s name registered on the platform.