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South Korean Committee Passes Bill Enforcing FATF Crypto Rules

South Korea’s national policy committee has passed an amendment establishing a legal framework for cryptocurrencies. It requires crypto exchanges and service providers to register with the country’s financial regulator and comply with the recommendations set by the Financial Action Task Force.

Also read: IRS Dispels Crypto Tax Confusion

Committee Passes Bill

On Tuesday, the South Korean National Assembly’s national policy committee passed an amendment to the Act on Reporting and Using Specified Financial Transaction Information, local media reported. Joongang Daily described on Wednesday that the bill “will establish a legal foundation for virtual currencies by categorizing them as digital assets,” adding that “Cryptocurrency is one step closer to being legitimate in Korea.”

The country’s top financial regulator, the Financial Services Commission (FSC), explained that the legislative move will enhance the transparency of crypto transactions while fulfilling international standards.

South Korean Committee Passes Bill Enforcing FATF Crypto Rules

The FSC emphasized that it plans to actively prepare the enforcement decree and relevant notices after promulgation for the implementation of the proposed rules. The regulator will also gather industry comments as part of the preparation process. The bill still needs to be passed by the judiciary committee and on the main floor of the National Assembly, the news outlet clarified, adding that if passed it will go into effect one year later.

Requirements and Obligations

The bill imposes anti-money laundering obligations on cryptocurrency exchanges and service providers. While there are several crypto-related bills pending at the National Assembly, Hankyung publication noted that this bill is the closest to the recommendations issued by the Financial Action Task Force (FATF), an intergovernmental organization founded to develop policies to combat money laundering. The FATF issued new guidelines for crypto assets and related service providers in June. At the G20 leaders’ summit in Japan, all of the G20 countries, including South Korea, declared their commitment to applying the FATF crypto standards.

The FSC explained on Wednesday that the bill requires crypto businesses to prevent money laundering and set ground rules for financial transactions, Joongang Daily also reported. “Under the new bill, all cryptocurrency-related businesses will be required to report to and register as digital asset businesses with the FSC’s Financial Intelligence Unit (FIU).” Previously, the FIU indirectly regulated cryptocurrency exchanges through administrative guidance to banks. Hankyung elaborated:

Violation of these reporting obligations can result in imprisonment of up to five years or fines of up to 50 million won [$42,517].

South Korean Committee Passes Bill Enforcing FATF Crypto Rules

Joongang Daily additionally detailed that “Those failing to report, those failing to acquire an Information Security Management System (ISMS) certificate from state-owned Korea Internet and Security Agency (KISA), and those operating false-identity bank accounts will not be approved.”

The South Korean government established the real-name system back in January last year. However, it is currently only used by the country’s top crypto exchanges: Bithumb, Upbit, Coinone, and Korbit. Banks have been reluctant to provide this service to other exchanges; they cited money laundering risk as the reason for denying service to smaller operators. The parliament and the FSC have agreed to set conditions for exchanges to use the real-name system. Furthermore, the news outlet conveyed on Wednesday:

The businesses will be penalized if they fail to establish their own oversight systems meeting Financial Action Task Force (FATF) standards.

What do you think of South Korea passing this bill to regulate the crypto industry in line with FATF’s recommendations? Let us know in the comments section below.


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Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.




Kevin Helms , 2019-11-27 08:20:40 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

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