In an attempt regulate the cryptocurrency storm that has hit South Korea, the government is considering a licensing system. The system would be likewise to a New York-based system called Bitlicense. That said, it has been reported that the final decision is set to be made this coming June.
If this new system comes into play, only exchanges that have applied for and have received licenses will be able to trade cryptocurrency. Business Korea has reported that only a limited number of firms and currencies will apply, as the system will require minimum capital requirements and detailed reporting regulations. This new system will simultaneously give the government better means of looking over the ever changing market and help cryptocurrency adapt further into the mainstream.
Although it is still a way of regulating the currency, it is a swift parallel from the measures it was taking in the past few months. No doubt those crackdowns were in response to the rise in Bitcoins popularity and the fact that the cryptocurrency had started to trade higher than their national currency.
It’s likely that the dwindling prices of cryptocurrency have eased the government’s urgency. As of today Bitcoin is held at about $8,700. Last year they saw heights up to $20,000. That said, the government now feels that a safely regulated market can be very beneficial.
Furthermore, it is figured that the government has come to believe that little good could come from outright banning cryptocurrencies. Doing so would cut off the country from benefitting from blockchain technology. The revolutionary technology that has sustained coin markets. The tension has been so low as of late that the deputy prime minister was quoted saying, “We don’t need to get rid of or suppress digital currencies.”