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   760

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 Need More Info on BTC ETF

SEC is gathering more input from the public – to date, according to the agency, more than 1,400 comments have been submitted
21 September 2018   183

The US Securities and Exchange Commission (SEC) announced the beginning of a formal process for considering the application for the creation of bitcoin-ETF from the New York companies VanEck and SolidX. Nevertheless, the agency appealed to the community for more information. This is stated in the document published on the SEC website.

Institution of such proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.

The US Securities and Exchange Commission

At the moment, the SEC received about 1,400 comments.

According to the document, the Chicago Board Options Exchange (CBOE) has signed an agreement on the exchange of data on bitcoin transactions, trading and the state of the market with the cryptocurrency trading platform with Gemini.

The agency asked commentators to clarify the position of Gemini in the digital currency market and assess the likelihood of increased volatility at this site in connection with possible trades of bitcoin-ETF.

So, before September 30, the department had to decide on whether to approve, deny or initiate the proceedings. The SEC chose the latter, which is likely to delay the process until the next year.