When world economic leaders met in Buenos Aires, Argentina earlier this year to come up with standard regulations that would apply to all G20 countries in regards to cryptocurrencies, South Korea did not appear to be on board with the proposals as the Group of Twenty governments and central banks decided to classify cryptocurrencies as financial assets while the Korean government was still classifying them as non-financial instruments.
Things have changed this week, however, as Korean regulators have agreed to comply with the G20 cryptocurrency unified standards which are set to go into action by this July.
The Group of Twenty, or The G20 for short, is an international forum catering to the governments and central bank governors of twenty countries. These countries include:
One of the main reasons The G20 decided to come up with a set of standard regulations for governing cryptocurrencies within these twenty countries is the fact that they have the potential of disrupting financial markets even though the total market value of all cryptocurrencies is less than 1 percent of global GDP
South Korean Compliance
During the last G20 Summit held in Buenos Aires, South Korea was adamant about the fact that they still viewed cryptocurrencies as non-financial products as the buying and selling of digital currencies is purely speculative since they have no real-world value at this time.
Recently, however, Korea’s Financial Supervisory Service (FSS) stated that while they still did not agree that cryptocurrencies were, in fact, financial assets, they would increase their efforts to stay in compliance with the regulations laid down by The G20.
South Korea has also agreed to comply with the Financial Action Task Force (FATF) standards whose main objective is to mitigate money laundering and the financing of terrorism on an international scale.
Many cryptocurrency and blockchain experts believe that South Korea’s compliance comes down to the fact that their country’s capital city, Seoul, is planning on offering its very own cryptocurrency in the near future.
The “S-Coin” will be used in social benefit programs geared towards improving the city, as well as to fund the advancement of blockchain technology within the city and the country as a whole.
Since Seoul leads the world in the advancement and application of communication and information it only makes sense that the country would want to comply with the G20 standards as much as they can to not only keep good relations with the rest of the world but to also help secure the advancement of technology which they see as the future for continuous economic growth.