23:03 GMT +325 June 2018
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    South Korea to Impose Stricter Regulation of Cryptocurrency Exchanges

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    The news comes hot on the heels of the exchange Coinrail being hacked and losing 30% of the coins traded on it. Japan earlier also adopted stricter laws regulating the cryptocurrency market following a series of exchange hacks.

    The Korea Financial Intelligence Unit (KFIU) may be authorized to regulate crypto exchanges the way it does with banks, if a new bill implementing such a feature passes, the online outlet Coinpedia reported. Exchanges will have to abide by strict anti-money laundering rules, the media added.

    The proposed bill comes after the head of KFIU discussed the matter at a Policy Advisory Council meeting. Coinpedia has reported that South Korean authorities will be using the US experience in its anti-money laundering legislation.

    READ MORE: Bitcoin Price Takes Nosedive as S Korean Exchange Loses 30% of Coins in Hack

    Currently, the cryptocurrency exchanges are loosely regulated as communication vendors, which limits the ability of countries' regulatory bodies to trace transactions to their origins. If the new bill passes, they will have the same access as they do with banks and financial institutions.

    The news came soon after Coinrail exchange admitted having been hacked to the tune of 30% of its total coin trade. The news affected the price of Bitcoin as well as some other digital currencies.

    READ MORE: Coincheck Exchange Bans Monero Amid Japan's Crackdown on Anonymous Currencies

    Earlier, Japan began to adopt stricter regulation in regards to crypto exchanges in a bid to fight money laundering. Stricter legislation there also came in wake of several hacker attacks on cryptocurrency exchanges.

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    Tags:
    cryptocurrency exchange, cryptocurrencies, regulation, Korea Financial Intelligence Unit (KFIU), South Korea
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