Four New Coins added by itBit after NYDFS Approval

itBit declared it has got the approval from the New York State Department of Financial Services (NYDFS) to add 4 major cryptocurrencies
14 June 2018   125

The New York-based exchange now lists 5 coins - Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Stellar Lumens for trading. It will also extend its custody and escrow services to the new coins that it presently provides for Bitcoin. The exchange will also suggest OTC trading services, which are necessary for the institutional investors.

This is an important milestone for itBit as we create a broader platform for crypto asset investors. We are committed to the growth and evolution of this ecosystem and DFS approval allows us to offer more trading and custody services across a wider range of crypto assets. Regulatory oversight and security have always been at the forefront of building our platform. We are thrilled to be able to offer these new services to our customers.
Chad Cascarilla
CEO, itBit

itBit was the first exchange to acquire an operating license the New York Banking Law by the NYDFS. Though the firm is proud of its regulatory compliance, it was rather close to the end of the recent CFTC subpoenas, that the agency sent out to 4 crypto exchanges suspecting Bitcoin price manipulation.

We also expect to see greater institutionalization of the space as traditional financial players develop the understanding and comfort to begin participating in the ecosystem.
Chad Cascarilla
CEO, itBit

The itBit CEO also stated that the exchange expects to see continued differentiation as the more reliable and useful crypto assets and utility tokens get the momentum in a couple of years.

Korea to Hasten Crypto Regulation After Bithumb Hack

As reported, recent Bithumb hack will fasten the process of implementing the country’s first crypto regulatory framework
20 June 2018   84

South Korean authorities have previously announced that they will regulate the exchange of cryptocurrency on a par with banks and tighten the requirements for them. Today's hack of the Bithumb exchange will speed up the process of developing the first fully-fledged legal framework for cryptocurrencies regulating in the country, CCN reports.

On June 11, after several months of discussions, the South Korean government and local financial regulators, including the Financial Intelligence Service, came to the conclusion that it was necessary to properly regulate the crypto-currency market with an eye to protecting investors and preventing large-scale hacker attacks.

Under current regulations, there are clear limitations in preventing money laundering on crypto exchanges because the only way authorities can spot suspicious transactions is through banks. If the bill of lawmaker Jae Yoon-kyung from the Democratic Party of Korea passes, local authorities will be able to impose identical regulations on crypto exchanges that are implemented on commercial banks.
 

Spokesperson from the Korea Financial Intelligence Unit 

 Despite the absurdity of the situation, at present, the crypto exchanges in South Korea is regulated as providers of communication services. In other words, to start the exchange it's enough to have about $ 30. Since exchanges of digital currencies have this status, government agencies and financial regulators do not directly supervise their activities.

On June 18, for the first time in history, local authorities acknowledged that the South Korean government was slow to implement rules to regulate the scope of the cryptocurrency, because it feared that investors would perceive this as a permissive signal for investing in digital assets and a sign of their legitimacy.

An increasing number of officials begin to share the view of a member of the National Assembly Committee Park Yong-kin, who said in late 2017 that the government cannot simply leave cryptocurrency exchanges unregulated because it only worsens the cryptocurrency sector.

We are frustrated as well. We fully understand that the government is reluctant towards regulating the cryptocurrency market because it will inevitably lead investors to consider it as the government’s way of legitimizing the market. But, if the government leaves the cryptocurrency market unregulated, it is simply leaving it vulnerable to variou issues.
 

Park Yong-kin

Member, National Assembly Committee

Local analysts say that officials already planned to speed up the development of measures for control in the cryptocurrency sector after hacking of CoinRail exchange, and the attack on Bithumb, which neither investors nor authorities were ready, will force lawmakers and regulators to present legal acts that will put the crypto exchange on one step with the banks, in even shorter terms.

Once the law is passed, the exchange need to work with local financial authorities and comply with safety standards if they want to continue to operate in South Korea. It is expected that the intervention of the Financial Intelligence Service and the Financial Services Commission will lead to significant improvements in the data processing, security and infrastructure of such sites.