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Law firm to fight against South Korea’s crypto regulations

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Law firm to fight against South Korea’s crypto regulations

South Korea has previously been known to have a bit of a soft spot for the digital currency industry, even being seen as a crypto- and Blockchain hub for startups and enthusiasts.

Even though the country is crypto-friendly, the growth surge of virtual currencies, especially Bitcoin,has resulted in South Korean authorities implementing certain regulations against crypto trading.

One of the rules that is in complete contradiction to the very nature of virtual currencies, which is that it offers a high level of privacy, is that the country wants to make trading non-anonymous.

Even though most of South Korea’s crypto community welcomes the regulations, a law firm based in Seoul is not too impressed. Anguk Law Offices had filed a constitutional appeal stating that the new framework is an “infringement of property rights.” The official added that the new trading regulations were “unconstitutional”.

The firm went on to state that because digital currencies are not recognized mediums of exchange in the country, a financial law cannot be applied to them.

Jeong Hee-chan, a lawyer at the firm, had this to say:

“We agree that regulations are necessary. But regulation should come after related laws are implemented. The petition is also a request for the government to respect people’s property rights and introduce regulations after reaching a social consensus.”

Hee-chan added that the first step to implementation is determining the status of cryptocurrencies, as in whether they are a currency, commodity, property or asset.

At the end of December last year, the country announced its plan to make trading non-anonymous in a bid to “curb virtual currency speculation”.

This new regulation could be implemented as soon as the 20th of January this year. If this is the case, crypto exchange clients will have to provide bank accounts in their real names, as well as provide their actual names on the exchange accounts.

In addition to this, many banks in the country are preventing clients from opening new virtual accounts, which is an essential requirement to trade on exchanges in the country. Some banks are even closing existing virtual accounts belonging to exchanges.

Regulating crypto seems to be another way to centralize decentralized virtual currencies. However, some believe that having a definitive and clear framework is a step forward in making the industry more accessible to a wider market, which in turn will make global adoption that much easier.