The South Korean government persistently is planning to soften its crypto regulations in accordance with the policies set by the G20 nations in an effort to create “unified regulations.” The Korean regulators have also come to an agreement to apply the standards to its crypto policies standardized by the Financial Action Task Force. The Korea Times reported stating that South Korea is reportedly planning to follow the procedures set by the G-20 nations and soften its crypto regulations.
The G20 acts as an international platform for the governments and central bank governors. Its members are Germany, Australia, China, United States, South Korea, France, Brazil, Japan, India, Saudi Arabia, South Africa, Turkey, Italy, Russia, Argentina, Canada, Indonesia, United Kingdom, Mexico, and the European Union. The news outlet noted that the topmost financial policymakers of these countries have agreed to acknowledge and regulate cryptocurrencies as their financial assets. The G-20 nations monetary policymakers have set a deadline in July to take the first step towards the ‘unified regulations’ of cryptocurrencies. This move by the G-20 is decided upon the reason that they look at cryptocurrencies financial markets as too minute to threaten. The market value of cryptocurrencies combined comes less than 1 percent of the global GDP.
While the cryptocurrencies are classified as financial assets by the G-20, the government of Korea previously mentioned them as non-financial products due to their risky and unstable nature. The Financial Supervisory Service (FSS) of South Korea, after identifying the variations stated that it’s almost definite that cryptocurrencies will be classified as assets and the primary issue of focus here will be on how to regulate the assets properly under the unified frame that would be under an agreement between G-20 nations. Given the current scenario, this is not good, but we will put in efforts to improve things. South Korea has also given its agreement for the application of the standards of the Financial Action Task Force (FATF) to cryptocurrencies; an inter-governmental body comes together to fight terrorism financing and money laundering.
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