The governor of the South Korean Financial Supervisory Service (FSS) has made calls for an “international discipline system” for cryptocurrencies and initial coin offerings (ICOs).
International Discussion
The 20th annual Integrated Financial Supervisors Conference (IFSC) was held from September 6th to 7th in Seoul. In attendance were officials and regulators from fourteen other countries including Japan, Canada, Australia, Singapore, the United Kingdom, and Germany.
They had gathered to discuss global regulatory issues. The South Korean FSS governor, Yoon Suk-heun brought to light that new financial services such as cryptocurrencies and fintech display potential risks for consumers. He urged for a global regulatory system to be put in place.
During the opening ceremony of the IFSC event, Yoon said: “For new risks involving cryptocurrencies, we must calm overheated speculation and crack down on illegal activities.”
In addition to this, according to the Korea Times, Yoon added, “The authorities are in a difficult situation to minimize the side effects while encouraging financial innovation… The aim is to calm overheated speculation and prevent illegal activities against new risks associated with virtual currency or initial coin offerings (ICOs)… We need to create an international discipline system, which can only generate regulatory gains between countries.”
Leading by Example
Yoon echoed the blockchain savvy crypto-positive sentiments that are commonly espoused by South Korean enthusiasts. He went on to elaborate on the present countermeasures in place for emerging or disruptive financial services, such as cryptocurrencies and ICOs.
He explained that the current system includes a “supervision method for effective internal control and compliance of financial companies, the direction of financial consumer protection system and financial inclusion policy, [and the] effective anti-money laundering system and how to operate it.”
The governor has hopes that information sharing and international cooperation will be bolstered, believing that “internal control of financial companies is a way to safely manage customers assets and maintain sound management.”
Yoon added, “Korea has faithfully implemented international supervision standards such as reporting doubtful transactions, confiscation of criminal proceeds related to the prevention of money laundering, and expanding the exchange of information between countries.”
Across the Globe
The European Union Parliament has been hot on the heels of creating a unified set of regulations for ICOs and cryptocurrencies with some members of the discussion acknowledging that the market is seeking legitimization and that these regulations need to be made with a sense of urgency.
Other nations are successfully implementing their own regulatory guidelines. Most recently, Uzbekistan legalized cryptocurrencies. In the Philippines, cryptocurrency exchange and ICO regulations are in the process of being finalized.
Other nations including South Korea are still fine-tuning the regulatory side of the industry, Canada has postponed their release of regulations until 2020, and China is presently struggling to manage legal cases related to cryptocurrency due to unclear regulations.
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