[AP/Yonhap News Photo]
South Korea will impose a ban on cryptocurrency transactions by teenagers and foreign residents along with tight regulations and punishment on illegal activities by digital money exchanges and speculative investors.
At a vice minister-level conference Wednesday, policymakers from government agencies, state watchdogs, tax authorities and police agreed on an array of measures to regulate cryptocurrencies.
Among other things, minors and foreign residents will not be allowed to open investment accounts, while financial institutions are barred from possessing, purchasing or investing in digital money. Related legislation will be made later to ensure transparency.
Banks are required to check the identities of cybermoney investors who should not use the accounts of others. Cryptocurrency exchanges face regular checks, and illegal activities will lead to a temporary shutdown.
From 2018, major exchanges are required to enhance security by introducing an information security management system (ISMS), which is now used to minimize risk and ensure business continuity by pro-actively limiting the impact of a security breach.
Regulations will be mapped out to restrict speculation such as the transfer of money for investments abroad. Security authorities will track and crack down on hacking, a breach of privacy, money laundering and other criminal activities.
South Korea is one of the world's largest online cryptocurrency exchange markets. Many are engaged in speculative investments.
Regulations will be mapped out to restrict speculation such as the transfer of money for investments abroad. Security authorities will track and crack down on hacking, a breach of privacy, money laundering and other criminal activities.
South Korea is one of the world's largest online cryptocurrency exchange markets. Many are engaged in speculative investments.
On Tuesday, the Korea Communications Commission decided to impose a fine of 60 million won (54,970 US dollars) on the operator of Bithumb, the country's largest digital currency exchange, for negligence in the protection of users' information. The watchdog said hackers stole the private information of users.
Concerns are growing over cryptocurrency users being targeted by hackers and swindlers. North Korean hackers are suspected of stealing and collecting bitcoins because it is hard to track them down.
reporter
Lim Chang-won
cwlim34@ajunews.com
