Korean government to hold a task force meeting to regulate its virtual currency

Some investors are enjoying big payoff through
Virtual currencies at the moment.
But crypto currencies’ lack of connection
to any government can mean easier access to
criminal activities.
Because Korea is one its biggest markets in
the world, local authorities are putting their
heads together to alleviate growing concerns
by devising better regulations.
Cha Sang-mi files us this report.
Amid rising cyber crime in Korea using virtual
currencies like bitcoin, the prosecution is
doing its best to regulate the system using
the existing law.
Prosecutors claim criminal activities using
virtual currency are draining national wealth,
with up to 2-point-3 billion U.S. dollars
leaving the country last year.
Crime organizations buy bitcoin abroad and
then exchange it for Korean won.
They use money given for transactions in Korea
to exchange for Chinese yuan, which they then
use to buy bitcoin.
During the process, they not only take a commission,
but also earn the difference between the Chinese
and Korean currency.
The price of the bitcoin is always changing,
but the Korean price is higher than the price
in China.
The difference per bitcoin can reach over
9-hundred U.S. dollars.
As bitcoin trading grows, such crimes also
rise as there is no obstacle to international
Prosecutors are focusing on such transactions
and arrested six people in Incheon last month.
To try to tackle the issue, Korea’s finance
ministry, as well as relevant ministries and
commissions related to virtual currencies,
will hold a joint taskforce meeting on Friday
to discuss ways to regulate the digital currency
The task force is to bring multiple regulations
such as the Electronic Financial Transaction
Financial Services Commission Chairman Choi
Jong-ku on Monday said that the commission
doesn’t acknowledge bitcoin transactions as
actual financial deals, since they aren’t
institutionalized transactions.
Choi said the FSC is discussing measures to
restrict transactions to some extent, and
is even considering an all-out ban.
Cha Sang-mi, Arirang News.

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