South Korea proposes international cooperation in regulating crypto

09 Sep, 2018
by Arthur Sillers
News
South Korea proposes international cooperation in regulating crypto

A South Korean financial committee has proposed broader international cooperation in order to meet regulatory needs over crypto and blockchain during a financial summit covering the future of international financial law.

 Earlier this week, the European Union has proposed a number of regulatory measures which would cover the member countries of the EU, and today, according to Asian Economic TV,  Korea’s Financial Supervisory Service has proposed measures to develop cooperative efforts between nation states to the Integrated Financial Supervisory Commission (IFSC), The IFSC is an international coalition of regulatory bodies which oversee the banking and financial sectors of a number of countries, including the UK, Japan, Singapore, and others.

While no direct programs have been spelled out, this proposal could indicate the direction that crypto regulation takes. It is becoming increasingly clear that due to crypto’s very nature, traditional forms of regulation do not afford countries the same level of oversight.

For example, as China and the US increased legal scrutiny of crypto, crypto companies moved en masse to Malta and Russia. Furthermore it is not always clear if a country has effective legal jurisdiction over crypto companies, as something of an academic consensus is forming that regulating the blockchain will require government bodies to develop international coalitions in order to enact any form of control over decentralized tecehnology. South Korea's announcement indicates it may be responding to this this line of thought.

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