S.Korea to Recognize Crypto as Digital Assets

Law will enter into force in a year after approval; crypto companies will required to comply with the FATF's AML requirements and register with FSC
27 November 2019   203

The National Policy Committee of the National Assembly of the Republic of Korea passed a bill on the regulation of virtual currencies. This is reported by local media.

According to the document, virtual assets are classified as digital assets.

Cryptocurrency companies will be required to comply with the FATF's requirements for preventing money laundering, as well as register with the financial intelligence unit of the Financial Services Commission (FSC).

Certification will not pass those who refuse to notify authorities of suspicious activity, do not receive a certificate of the Information Security Management System, and will also manage bank accounts that have not been identified.

For such companies, a fine of up to 50 million won (about $ 42,500), or imprisonment for up to five years is provided.

According to representatives of the FSC, the bill will contribute to the transparency of the cryptocurrency market, as well as legitimize investment in this type of asset.

It is expected that one year after approval, the bill will enter into force.

Chinese Bitcoin Miners Share to Reach 66%

Such superiority of Chinese miners may be due to a large number of farms or more advanced equipment for mining cryptocurrency, expert believes
12 December 2019   86

Miners based in China currently control two-thirds of the total processing power of the bitcoin network. It is reported by Reuters, citing a fresh report by CoinShares.

In June, this value was 60%, reaching the highest level in December over the past two years, during which CoinShares tracks this data. According to the chief researcher of the company Chris Bendiksen, such superiority of Chinese miners may be due to a large number of farms or more advanced equipment for mining cryptocurrency.

This is beneficial to the Chinese mining industry. If you are the first to increase your proportion of the hashrate, and you can do that before your competitors, that’s generally good.

Chris Bendiksen

Head of Research at CoinShares

As the publication recalls, such major mining equipment manufacturers as Bitmain, MicroBT and Canaan are also based in China.

CoinShares representatives also noted that since June, the bitcoin hash rate has increased by 80%, which was partially possible due to the high profitability of this activity and more powerful equipment.

Bitcoin Difficulty Chart
Bitcoin Difficulty Chart

Despite the harsh rhetoric of the Chinese authorities regarding cryptocurrencies, in November, the National Development and Reform Commission (NDRC) did not include mining in the list of “undesirable industries” that are subject to ban.