Korean Supreme Court to Decide on Crypto Regulations

Korean lawyers from Seoul have filed an appeal accusing their government of “unconstitutional” infringement on property rights  
08 February 2018   1061

At the end of December, a law firm filed their appeal through the Constitutional Court’s online system. This case against the South Korean government over cryptocurrency regulations has been referred to the country’s Supreme Court by the Constitutional Court.

The government insisted that the real-name system is based on the Banking Law and the Financial Information Act. If the court decides that the regulations are unconstitutional, all existing crypto regulations imposed by the government could be cancelled.

According to the lawyer Jeong Hee-chan, the regulation of the trade through administrative guidance without legal grounds is an infringement on people’s property rights. He agrees that crypto regulations are necessary but they should come after the implementation of related laws.

Starting from January 30 of 2018, all the unknown institutions that have virtual bank accounts were limited. This mandatory real-name system for cryptocurrency exchange accounts was implemented by the Finance Service Commission (FSC) in South Korea. According to this policy, traders are not allowed to make deposits in digital accounts if the name of their bank account does not match the account name in the crypto exchange.

Currently, only 8.21% of all virtual accounts at the country’s top four exchanges have been converted into real-name ones. Around 1.6 million accounts remain anonymous. Moreover, banks are only converting accounts for large exchanges such as Upbit, Bithumb, Coinone, and Korbit, leaving smaller exchanges with no way to use the real-name system.

The matter should be concluded within 180 days from the date of filing under the Constitutional Court Act which was on December 30. Therefore, the case is expected to conclude by the end of June.

SEC to Start VanEck-SolidX BTC-ETF Consideration

Starting today, the 45-day countdown to the SEC initial decision was launched
20 February 2019   98

For the first time since August of last year, two proposals on the creation of a Bitcoin-ETF are under consideration by the US Securities and Exchange Commission (SEC).

The application of VanEck and SolidX, issued in cooperation with the Cboe BZX exchange, as expected, was included in the Federal Register issue this Wednesday, with which the 45-day countdown to the SEC initial decision was launched. The application of Bitwise Asset Management and NYSE Arca was published last week.

I … hope that our investment in regulatory and market education, hard work and commitment will be honored when the time comes.

Gabor Gurbacs

Director of digital asset strategy, VanEck

The head of Bitwise’s research department, Matt Hogan, believes that not only firms that have submitted bids to create Bitcoin-ETFs are looking for approvals, but and the entire “extremely fast-growing” crypto industry.

A year ago there was maybe one qualified crypto custodian … and now there are half-a-dozen, and that number will go up from here. A little more than year ago, we didn’t have futures. A year ago we didn’t have nearly as many firms making markets. A few months ago, you didn’t have folks like Fidelity announced in the space. It’s evolving really, really quickly.

Matt Hougan

Global head of research, Bitwise

 As reported, ultimately, however, a bitcoin ETF approval will depend on how companies approach their proposals.