{"id":18673,"date":"2020-03-11T15:30:08","date_gmt":"2020-03-11T15:30:08","guid":{"rendered":"http:\/\/ci027cfe70d0072697"},"modified":"2025-01-27T20:28:40","modified_gmt":"2025-01-27T20:28:40","slug":"india-lifts-crypto-ban-south-korea-imposes-new-rules-and-the-us-remains-stagnant","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/business\/india-lifts-crypto-ban-south-korea-imposes-new-rules-and-the-us-remains-stagnant","title":{"rendered":"India Lifts Crypto Ban, South Korea Imposes New Rules and the US Remains Stagnant"},"content":{"rendered":"
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The latest cryptocurrency regulations in Asia are wins for Bitcoin adoption but come at the cost of privacy. South Korea is tightening cryptocurrency regulations while India will likely lift its 2018 ban giving cryptocurrency companies bank accounts. <\/p>\n

Meanwhile, an American lawmaker has proposed a new bill that follows suit but is not expected to pass.<\/p>\n

India \u2014 Central Bank Overruled<\/h2>\n

India\u2019s supreme court has overruled the Reserve Bank of India (RBI)\u2019s 2018 ban that prevented banks within the country from working with cryptocurrency-related businesses. Sunny Ray, the global head of business development for cryptocurrency exchange Kraken and previous founder of the first regulated cryptocurrency exchange in India, described the significance in a blog post<\/a>.<\/p>\n

\u201cThis is an incredibly emotional moment for India,\u201d Ray wrote. \u201cSatoshi created Bitcoin because he felt that central banks were inefficient. The fact that the crypto industry just battled, and won, against the central bank located in the second-most populous country in the world is a massive achievement. We fought for 1.5 billion people to have the right to access crypto.\u201d<\/p>\n

Ray\u2019s comments are not overblown. The Indian Supreme Court\u2019s 180-page ruling<\/a> boils down to a limit on the RBI\u2019s power, by acknowledging how disproportionate the ban is for dealing with the often purported risks of cryptocurrency \u2014 enabling money laundering and terrorist financing. The court acknowledged that rather than prevent these risks, outright prohibition could have even exacerbated the problem by driving illicit activity underground. Though legislation will take time, reversing the ban means the Indian government will regulate cryptocurrency businesses with AML\/CFT controls. <\/p>\n

Although it\u2019s easy to imagine what the RBI\u2019s real intentions for such a disproportionate ban actually were, this overruling is a win for Bitcoin adoption and a limit on consumer privacy.<\/p>\n

Despite the overrule, India\u2019s central bank is now seeking a review. Meanwhile, cryptocurrency businesses inside and outside India are moving quickly. For example, Kraken stated, \u201cThe future is bright for crypto in India, we\u2019re going to be there every step of the way.\u201d<\/p>\n

South Korea \u2014 FATF Guidelines Become Law<\/h2>\n

South Korea\u2019s latest significant cryptocurrency regulation announcement is less palpable. Where there was previously no law, only guidelines, its new bill provides a framework for regulating cryptocurrency to the Financial Action Task Force\u2019s (FATF) AML standards. <\/p>\n

The announcement is both a win for legal certainty and an imposition of heavier requirements for cryptocurrency businesses in the country. In short, the bill will necessitate more alphabet soup compliance accreditation for cryptocurrency businesses through the real-name verification system<\/a> to hold a bank account within the country as well as certification via the information security management system (ISMS) from the Korean Internet Security Agency (KISA).<\/p>\n

We spoke with Joyce Yang, CEO of Global Coin Research<\/a>, to break it down. <\/p>\n

\u201c[People] could already trade cryptocurrency with over 30 exchanges in Korea prior to the amendment passing, but with the amendment, the permitted and licensed exchanges actually goes down to just five to seven exchanges,\u201d Yang said. <\/p>\n

This number will probably increase as unaccredited exchanges have until September 2021 to meet the requirements. However, Yang is also hopeful that this new law will ultimately bring in more institutional money to Korean exchanges which, according to Yang, has plateaued as a retail market for the last six months.<\/p>\n

U.S. \u2014 Regulatory Action Lacks Political Backing<\/h2>\n

These regulatory movements in Asia are without a doubt being followed closely in the West. Yang pointed out that U.S. Securities and Exchange Commission (SEC) Commissioner Hester Pierce has frequently visited Asian countries such as Singapore, expressing the need to accelerate cryptocurrency regulation guidelines within the United States. However, she is also less sure something will be moved forward in the short term due to the coronavirus. <\/p>\n

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Beware of the \u201cCrypto-Currency Act of 2020\u201d or any kind of legislation which may force businesses to spy on, deanonymize, or micro-monitor customers.<\/p>\n

This is an attack on financial privacy, which we will desperately need in the future to safeguard democratic rights and freedoms. pic.twitter.com\/B9lDM8lxE4<\/a><\/p>\n

— Alex Gladstein \ud83c\udf0b \u26a1 (@gladstein) March 10, 2020<\/a><\/p><\/blockquote>\n