To Protect Investors
The National Assembly is expected to pass a new bill stipulating the scope of cryptocurrency business in the second half of this year. Then, cryptocurrency investors can be better protected and blockchain technology development can be accelerated.
“The passage of the bill is anticipated this autumn,” Democratic Party of Korea lawmaker Kim Byung-wook remarked on June 3, adding, “The new law that will be more independent than the Electronic Financial Transactions Act and the Act on Reporting and Using Specified Financial Transaction Information is expected to provide a new approach for investor protection and blockchain technology development.”
The Act on Reporting and Using Specified Financial Transaction Information is to prevent a cryptocurrency flow into terrorist groups in accordance with advice from the Financial Action Task Force. The relevant money flow can be tracked based on the act, and yet the act alone is not enough to manage the huge cryptocurrency investment market.
In France and Hong Kong, such business scope-related laws have already been enacted. The Japanese government is systematically regulating the cryptocurrency industry with a fund settlement law.