Crypto Regulations: Japan, South Korea and Singapore

The Coin Shark keeps on telling about cryptocurrency regulations and today we’d like to focus on three major Asian jurisdictions that have a great influence on virtual currency industry.

Japan

Japan is rather liberal in terms of cryptocurrency regulation, seeking to cooperate and guide rather than to ban and subdue. The country has created a rather good environment for the industry, especially if compared to other Asian crypto-behemoths like South Korea and, of course, China.

However, in late January 2017, a large Japanese exchange Coincheck was hacked and $530 million worth of NEM coins were stolen. Such things often push authorities and institutions to tighten screws. Japan’s Financial Services Agency (FSA) ordered the exchange to improve security.

Currently, Japan’s virtual currency exchanges, as well as external exchanges that want to operate on Japanese market, should obtain license to do their business.

Anyway, News BTC fairly says “Japan leads the cryptocurrency world both in trading volumes and crypto-friendly regulations”. Being one of the largest cryptocurrency markets, Japan is really helping the industry to develop by means of its liberal policy.

South Korea

South Korea could have become a “refugee camp” after China attacked virtual currencies in the end of 2017.

Last summer the government legalized bitcoin but then started discussions to come up with better (stricter) cryptocurrency regulations. By the end of 2017 South Korea announced its plans to ban anonymous cryptocurrency trading to control speculation and then introduced these regulations. Notably, Seoul-based law firm Anguk Law Offices filed a constitutional appeal claiming the government “infringes property rights”.

In 2018 there were many speculations about possible ban on cryptocurrency trading, however, on February 15th, the government, responding to an online petition, declared that there would be no ban so far. It was also stated that there were many opinions on that issue, including the implementation of total restrictions.

Singapore

Asian tiger has long been fairly liberal towards cryptocurrency. When Bitcoin reached its peak in December 2017, the Monetary Authority of Singapore (MAS), as many other regulators, warned that virtual currency market is risky and speculative.

In February, 2018 Bitcoin Magazine quoted Mr. Tharman Shanmugaratnam, Singapore’s Deputy Prime Minister, who said that “the country’s laws do not make any distinction between transactions conducted using fiat currency, cryptocurrency or other novel ways of transmitting value, when it comes to money laundry or terrorism financing.” In January, 2018 MAS fintech chief Sopnendu Mohanty said regulators would have to ensure consumer protections for cryptocurrency users and this will let virtual money to grow.

Anyway, Singapore is not trying to control virtual currencies completely, however, it may expand its supervision, when it comes to converting fiat money into cryptocurrency or vice versa, seeking to prevent illicit activities like money laundry.

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