South Korea has been on a roll with its cryptocurrency regulations. Over the past few days, it has gone back on its own words and implemented new rules arbitrarily. It has led to a strong wave of protest from crypto investors and opposition parties. The ensuing tussle led to a situation of utter chaos in South Korea, where panic-stricken crypto owners did not know what to do with their cryptocurrencies. The problems for South Korean crypto investors do not seem to be changing, with the government now on its way with another set of regulations for token issuers.
However, it is worth noting that the overall intent behind these regulations for token issuers is geared towards the safety of regular investors. What will be the extent of these policies is still not determined, but they have the potential to be great frameworks for investor security and the prevention of money laundering.
The Financial Services Commission (FSC) is the apex regulatory body in South Korea. In a recent report, the FSC has stated its new definition of what is a cryptocurrency, and steps for becoming a token issuer. It also lists penalties for non-compliance and what would be considered as non-compliance.
Among the proposed mandates for token issuers is a clause that requires crypto exchanges to regularly present reports to the public. If materialized, this clause will mean a lot more transparency and investors will be able to make better investment decisions. Whether these regulations will have a good or bad impact is subject to speculation.