South Korea reaches out to Asian neighbors in effort to regulate cryptocurrencies

South Korean financial authorities plan to cooperate with Chinese and Japanese colleagues
09 January 2018   156

Right now South Korea is one the countries with the biggest cryptocurrency-related infrastructure. Several large exchange services are also stationed there. All this makes South Korean regulators the biggest heavy-hitters in the field of cryptocurrency regulations. And now they plan to join forces with their Chinese and Japanese colleagues to promote inter-state regulations and law-making effort.

Also, as you can understand, the prosecutors will be able to reach across borders to investigate and close up any illicit activities such as money laundering and crime financing, performed through the blockchain.

Korean authorities plan to step forward and exchange their trial-and-error experience in cryptocurrency regulations for all of the Asian countries to benefit from. Deputy finance ministers from all three countries have already conducted a meeting last month to exchange ideas in the field.

For example, right now South Korean authorities are investigating six banks for the possible involvement in money laundering. Accounts of cryptocurrency traders are the primary targets in this investigation effort. The banks should acts as a gatekeeper to filter out the possible illegal activities and must report any such findings, said South Korean Financial Service Commission chairman Choi Jong-ku. In the latest interview to Yonhap News Agency he also briefed media about upcoming bank inspection, that will run starting this Thursday with Korean Financial Intelligence Unit participating in the action.

Bank of America: Cryptocurrencies Are a Threat

Bank of America (BoA) has admitted to US regulators it can not pretend any longer that cryptocurrencies are not a threat
23 February 2018   136

On February 22, the report was filed with the US Securities and Exchange Commission (SEC). It listed a range of economic, geopolitical, and operational risks that the Charlotte, NC-based bank faces as it heads into the new fiscal year. Crypto adoption was on the list for the first time.

Bank of America (BoA), which recently banned purchasing of crypto with credit cards, stated that this and other similar policies could cost the bank clients.

Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies.

The second largest bank in the U.S. said that adoption of cryptocurrencies could require the bank to make “substantial expenditures” to update its existing services and remain competitive with upstart firms.

The widespread adoption of new technologies, including internet services, cryptocurrencies, and payment systems, could require substantial expenditures to modify or adapt our existing products and services.

According to the Bank of America, cryptocurrencies could limit the institution’s ability to comply with anti-money laundering regulations.

Eventually, this is one of the first public admissions that financial institutions are beginning to worry that mass cryptocurrency adoption could one day become a reality.