South Korean Government Delayed Regulation to Avoid 'Legitimizing', Bank of International Settlements Publishes Crypto Report and Two of Russia's Largest Banks to Offer Crypto Investment Portfolio


Crypto Corner - June 18, 2018

South Korean Government Delayed Regulation to Avoid 'Legitimizing', Bank of International Settlements Publishes Crypto Report and Two of Russia's Largest Banks to Offer Crypto Investment Portfolio

CCN reports that the government of South Korea has delayed regulation in the crypto market out of concern of "legitimizing" it. The piece quotes National Assembly Committee member Park yong-jin:

"We are frustrated as well. We fully understand that the government is reluctant towards regulating the cryptocurrency market because it will inevitably lead investors to consider it as the government's way of legitimizing the market. But, if the government leaves the cryptocurrency market unregulated, it is simply leaving it vulnerable to variou issues."

This follows news last week that the country's financial agencies, including the Korea Financial Intelligence Unit (KFIU), would begin regulating institutions like commercial banks.

The Bank of International Settlements (BIS), a Swiss-based international financial institution, published an article yesterday as part of its annual economic report in which it discusses crypto at length. The article provides a thorough reading of the crypto world but names three "shortcomings" as: "scalability, stability of value and trust in the finality of payments."

The EOS blockchain was reported to have frozen yesterday, only two days after going live.

Two of the largest Russian banks, Sberbank and Alfa-Bank, are experimenting with crypto-based solutions within the "regulatory sandbox" of the country's Central Bank, according to local outlet Kommersant. One such solution is an investment portfolio which the piece describes as comprising six cryptocurrencies, including: Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH) and Litecoin (LTC).

"We want to offer our clients a completely transparent version of the entrance to digital assets that fully meets the regulatory requirements that will allow them to invest in an interesting product in Russia," said Anna Ivanchuk, deputy head of Sberbank Private Banking.

"Our goal is to accelerate the adoption of a decision on the recognition of the CFA investment assets and introduce them into the legal field as quickly as possible," said Anton Rakhmanov, the managing director for the development of the product offer for Alfa-Bank's private wealth management unit.

Sam Mowers, Investorideas

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