South Korea’s Financial Supervisory Service has stated that it won’t regulate the digital token markets due to cryptocurrencies not comprising a legally recognized financial instrument. In central bank news, Zimbabwe’s central bank has stated that bitcoin is not legal, and Singapore’s central bank has launched the second public consultation for its newly proposed payments legislation. Here’s a regulator round-up.
South Korea’s Financial Regulator Does Not Plan on Regulating Cryptocurrencies
The Governor of South Korea’s Financial Supervisory Service (FSS), Mr. Choe Hueng-sik, has indicated that the FSS does not consider bitcoin and other digital tokens to comprise legitimate currency, and as such, will not regulate the cryptocurrency markets.
The governor likened the FSS’s stance to its regulatory position regarding casinos, stating “It is the same with the fact that we don’t regulate or supervise casinos. Though there could be concerns on excessive gambling, that does not provide grounds for the FSS to control casino practices.”
The governor indicated that the FSS’s position would change only if cryptocurrencies were to become a legitimately recognized currency, stating “Though we are monitoring the practice of cryptocurrency trading, we don’t have plans right now to directly supervise exchanges. Supervision will come only after the legal recognition of digital tokens as a legitimate currency.”
Reserve Bank of Zimbabwe States Bitcoin “Is Not Actually Legal”
Norman Mataruka, the Reserve Bank of Zimbabwe’s (RBZ) director and registrar of banking institutions, has told reporters that bitcoin is not legal. Mr. Mataruka stated:
“In terms of the bitcoin, as far as we are concerned, it is not actually legal. In Southern Africa, what we have done as regulators, we have said that we will not allow this in our markets… Research is currently being undertaken to ascertain the challenges and risks associated with these particular products and until we have actually established and come up with a legal and regulatory framework for them, it will not be allowed.” […]