South Korean regulators and officials is likely to weaken the regulation of cryptocurrencies, starting with their classification as «financial assets».
In July comes the deadline for bringing member States of the G20 its laws into compliance with the recommendations for the regulation of cryptocurrencies that should be treated as «financial assets» according to leaders of the 20 largest economies in the world.
However, the authorities of South Korea had previously classified the cryptocurrency as «nonfinancial assets» because of their speculative nature. Becoming more and more obvious that Korea is likely to change its position on a more friendly, as the financial regulator of the country promised to «improve the situation» in the field of regulation.
As reported by the Korea Times, the financial Supervisory Service (FSS) recognized the common position in the G20, which means imminent changes in Korea. The article notes:
«It is clear that cryptocurrencies will be classified as assets, and the main problem will focus on how to regulate them under a single legislation, which will be agreed by G20 countries. The current position of Korea leaves much to be desired and we will step up efforts in order to change this».
This statement corresponds to the recent remarks of the new Chairman FSS Yoon Suk-the star (Yoon Suk-heun), who said that the internal investigation of the cryptocurrency showed «positive aspects» that may affect the weakening of regulation in the near future.
It is noteworthy that the FSS was the Agency which imposed a ban on the ICO and the implementation of margin trading after Chinese regulators in September last year. In February of this year it became known that the authorities plan to introduce licensing of cryptocurrency exchanges, and also want to maintain a «normal» cryptocurrency trading. In addition, in March there were rumors that South Korea may soften the ban on holding ICO and develops the draft taxation of cryptocurrencies.