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Korean government enforces new amendments on sale of cryptocurrency

Ajay Narayan

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Korean government enforces new amendments on sale of cryptocurrency
Source: Unsplash

On 27th September, a recent report stated that the government of South Korea held a cabinet meeting to discuss the sale and brokerage of cryptocurrency assets and why it should not be included as a part of the business venture enterprises.

During the cabinet meeting which was held under the Prime Minister Lee Nak-yeon, they voted on amending the Enforcement decree act on the promotion of business ventures.

According to the report, blockchain based cryptocurrency trading and brokerage businesses were witnessing an increase in illegal activities related to hacking, money laundering, overheating and blockage issues. The government decided to set a separate business sector and stated that blockchain based cryptocurrency trading and brokerage businesses will not be included in the business venture enterprises.

In addition, followed by the G-20 summit, the government planned to follow the policies set by the G-20 nations in order to soften its cryptocurrency regulations. Earlier, the Korean government had categorized cryptocurrencies as non-financial products due to their uncertain nature whereas the G-20 nations classified cryptocurrencies as financial assets. The policymakers of the Korean government were ready to acknowledge the cryptocurrencies as financial assets.

The Korean Financial Intelligence Unit [KFIU] recently began to find new ways of regulating the digital asset industry. This was done followed by the hack of the South Korean cryptocurrency exchange Conrail. About $33 million was hacked from the exchange which led to the government implementing new policies for financial institutions.



Despite the regulatory problems, third generation blockchain platform “Orbs” had been gaining a lot of attention in South Korea. The Orbs platform focussed on building on the strengths of Ethereum.

The report further added that the competition among the third generation blockchain trading platforms had begun. These trading platforms could solve the problem which occurred on the Ethereum blockchain platform. Some of the problems Orbs claimed to address was the commission fee for each transaction and a slow speed of data processing. The second generation platforms were the one which started after Bitcoin.





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Ajay Narayan is a full-time journalist at AMBCrypto. He has majored in Economics, Political Science and Sociology. His interests are inclined towards writing and investing in cryptocurrencies.

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Montana State makes a move in favor of crypto-space as the law recognizes utility tokens as not securities

Priya

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Montana state makes a move in favor of crypto-space as the law recognizes utility tokens as not securities
Source: Unsplash

The United States has always been the highlight of the cryptocurrency space in terms of its regulation, with some states introducing laws in its favor and others deciding to not make an official stance. In terms of laying crypto-friendly rules and regulation, Wyoming has always been one of the most recognized state, while the most hostile one is deemed to be New York.

Colorado made headlines earlier this year, with the Digital Token Act that exempts utility tokens from state securities law being signed by the governor in early March 2019. Notably, in the same month, Wyoming State Senate also passed House Bill 70, Utility Token Bill.

Now, another state has joined the bandwagon by making a similar move. Drew Hinkes, Attorney at Carlton Fields, stated that the State of Montana recognizes utility tokens and exempts it from state securities law. The initial announcement pertaining to this bill was made in February 2019, where Montana House Bill was introduced to “Generally revise laws relating to cryptocurrency”.

The Attorney stated on Twitter,

To this, Caitlin Long, the Co-Founder of Wyoming Blockchain Coalition stated,



“Congrats to #Montana for joining #Wyoming & #Colorado in recognizing that #utilitytokens are not securities under state law!”

Montana also made headlines because of news pertaining to cryptocurrency mining regulation. According to a local news portal, Missoula County commissioners had directed its staff to outline an interim law that regulates the cryptocurrency mining industry. The decision to introduce laws on crypto-mining was made due to concerns pertaining to electricity consumption, with the county prompting the use of renewable energy for mining.

Commissioner Cola Rowley had stated,

“This isn’t throwing ice on economic development or saying that industries aren’t welcome here because we’re an unfriendly environment that hates progress. Cryptocurrency and economic development – bringing businesses here – are two very different things.”





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