South Korea Sets Up Task Force to Determine if Bitcoin Needs Regulations

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South Korea Sets Up Task Force to Determine if Bitcoin Needs Regulations

Following Rep. Park Yong-jin’s announcement of a proposed bill to provide a legal framework for digital currencies like bitcoin, South Korea has now set up a task force to determine if bitcoin should be regulated.

Also read: Rollout of 260,000+ Bitcoin-Accepting Stores in Japan Begins

Task Force Set Up

South Korea Sets Up Task Force to Determine if Bitcoin Needs recently reported on Rep. Park Yong-jin of the ruling Democratic Party of South Korea preparing a bill that will provide bitcoin, ethereum, and other digital currencies with a legal framework.

Following lawmaker Park’s efforts towards digital currency legislation, Business Korea reported that the South Korean Financial Supervisory Commission is taking a prudent approach. According to an official of the Commission:

Currently, a relevant task force team is studying overseas cases to determine whether or not regulations are needed. Nothing has been decided about the legislation of a bill about virtual currency.

Similar Move by Other Countries

South Korea Sets Up Task Force to Determine if Bitcoin Needs RegulationsSouth Korea is not the only country to set up a task force to evaluate if bitcoin should be regulated, nor is it the only country looking to others for examples.

Recently, India announced that it would set up a task force to come up with recommendations regarding bitcoin regulations, which are expected in 6 months. In Southeast Asia, the Deputy Prime Minister of Thailand has also ordered the country’s central bank to study bitcoin and learn from other countries as well. In addition, he proposed creating a dedicated fintech unit that can explore the opportunities presented by bitcoin.

While several countries are still evaluating whether to regulate bitcoin, the Korean Financial Supervisory Commission noted that Japan stands out as having already revised its laws to recognize and regulate the cryptocurrency.

Possible Needs for Regulations

South Korea Sets Up Task Force to Determine if Bitcoin Needs RegulationsDomestic bitcoin exchanges in South Korea such as Bithumb, Korbit, Coinone and Coinplug are not subject to regulations and oversight by financial authorities, unlike other financial institutions in the country. However, large-scale transactions are being made through them.

Lawmaker Park pointed out that currently these exchanges “receive about 6.5 billion won (US$5.8 million) a day by 0.5% of transaction money as a commission,” even though they were established without any license from financial authorities. Business Korea then quoted him saying:

No legal regulation in Korea has led to no definition of virtual currency and furthermore, made virtual currency-related activities as a whole illegal. Korea must make discussions in terms of law and systems.

South Korea Sets Up Task Force to Determine if Bitcoin Needs RegulationsCurrently, all these exchanges are “registered and operating as a ‘telecom vendor’ that can be opened for business immediately after they report it,” Kinews detailed.

The lack of relevant laws has led each bitcoin exchange to set up their own security regulations, explained a domestic cryptocurrency exchange, Coinone. “Compared to financial institutions like banks, it is true that these are not enough,” the publication quoted the exchange saying. “For Coinone, we are building an enhanced security system that includes not only our own security management but also consulting services from security experts.”

In addition, the media outlet quoted an official of the South Korean Financial Supervisory Service saying, “legal guidelines are essential for insurance to compensate for the damage caused by virtual currency.”

Do you think South Korea will follow Japan’s footstep and legalize bitcoin? Let us know in the comments section below.

Images courtesy of Shutterstock and Business Korea

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The post South Korea Sets Up Task Force to Determine if Bitcoin Needs Regulations appeared first on Bitcoin News.

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2017’s Best Bitcoin Desktop Wallets – 4 Wallets Reviewed (Mac, Windows, Linux)

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The post 2017’s Best Bitcoin Desktop Wallets – 4 Wallets Reviewed (Mac, Windows, Linux) appeared first on 99 Bitcoins.

Today’s post is about the best Desktop wallets available for storing your Bitcoins. Desktop wallets are wallets that store the private key for your Bitcoins on your hard drive. By nature, desktop wallets are more secure than mobile wallets (since they’re harder to steal). If you’re new to the world of Bitcoin and wallets please […]

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Jihan Wu Talks About Obedience to Authority in the Bitcoin Ecosystem

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Jihan Wu

Jihan Wu is a founder of the mining company Bitmain and an influential force in the cryptocurrency space. He spoke on many topics at the Future of Bitcoin conference in Arnhem, Netherlands, which took place June 30 to July 1. The title of his talk was “Why Multiple Implementations are Quite Important for Bitcoin.”

Also read: The Decentralize Your Life Tour: An Interview With Derrick Broze

Jihan Wu Talks About Obedience to Authority in the Bitcoin Ecosystem
Jihan Wu

One of the most powerful things Wu discussed was the psychology of authority that is surrounding the bitcoin ecosystem. Wu talked about several popular social psychological experiments and how they may play out in the current unfolding drama. He opened, however, by discussing different ways society is organized by governments: aristocracy, monarchy, oligarchy, tyranny, and democracy.

Dictatorship in Crypto-Projects

He said crypto-project founders could potentially be tyrants or dictators. He said usually founders have contributed the most to a project, though. The founder’s skills are well recognized and he/she knows everyone who contributed…and is almost renowned. But Wu points out this could cause problems and create a platform for dictatorship. He elaborated:

Why can’t we see other ways to organize as Aristotle described? Democracy is not possible in opensource software. That is because developer’s software is very complicated and abstract. And who is good and who is bad is most of the time obvious, and you cannot just vote to decide which way the software is going to go. So tyranny is there and lack of enforcement is there. It is not open source software then. It is Microsoft. It is Office. Maybe this is why Microsoft is so hated in the opensource software community.

Human Nature and Obedience to Authority

Wu said tyranny crops up partly as a result of human nature, and the human tendency to be obedient to authority. He said there is a readiness for human beings to obey others. He defended his point by citing Stanley Milgram‘s Obedience to Authority Experiment. He also said that Jihan Wu Talks About Obedience to Authority in the Bitcoin Ecosystemhumans have inbuilt biases, such as the the Halo Effect. This means that if people have a certain quality or impression, then other contributors and people may be more likely to follow them. Lastly, Wu cited the Bandwagon effect. In this psychological effect, people are likely to follow the crowd or follow people merely because they are doing it.

He said all of these are social dynamic effects that everyone in the cryptocurrency ecosystem has to be wary of, lest we end up following a ruler in the form of a developer or programmer. Wu even applied his logic to Satoshi Nakamoto, saying he altered the bitcoin code multiple times and no one really questioned the move until Jeff Garzik came along. This is something that has to be watched, even if it is the creator of Bitcoin, Wu implied.

Many Implementations of Bitcoin; Smart Contracts and economic incentives

In order to solve this problem of protocol tyranny and hijacked implementations, Wu suggested that for the future of bitcoin to remain beautiful and grow, the community will need multiple implementations. Wu said:

I think we need to encourage multiple implementations, so we do not have to be hijacked by the monopolistic implementations. I think if we have had multiple implementations earlier some of the miners in China would have been more comfortable switching to big blocks road maps. Everyone would have felt more comfortable switching software. I think we need to encourage multiple implementations because it will help bitcoin bring new innovations.

Wu goes on to mention that Bitcoin has missed many great innovations, including smart contracts and the creation of decentralized exchanges. He mentioned that as a community bitcoin is a little late to the game in regards to innovation. He said the bitcoin ecosystem is also missing economic reward incentives in regards to inflation.

The reason why bitcoin has missed these innovations is because some bitcoiners, according to Wu, trash new innovations by always calling them scammy or leveling other judgmental critiques. Wu says getting the community outside of the follower mentality and convincing them to accept the possibility of innovation through multiple implementations will provide the network and ecosystem with the room to grow and thrive.

Do you think there is too much obedience to authority in the bitcoin ecosystem? Is it causing innovators and others involved to miss opportunities for multiple implementations? Let us know in the comments below.

Images via Shutterstock and Jihan Wu’s Twitter Page

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The post Jihan Wu Talks About Obedience to Authority in the Bitcoin Ecosystem appeared first on Bitcoin News.

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Thai Startup Omise Unveils Ethereum-Based Digital Wallet for the Unbanked

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Omise, a fintech startup operating across Asia, is building an Ethereum-based white-label digital wallet platform designed to enable real-time, peer-to-peer transactions and payment services at lower costs. It aims to improve financial inclusion and disrupt existing institutions. “OmiseGO basically is a wallet where people can actually cash in and cash out even if you don’t […]

The post Thai Startup Omise Unveils Ethereum-Based Digital Wallet for the Unbanked appeared first on Coinjournal.

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