South Korea regulator asks lawmakers to quickly sign crypto law after attacks

A leading South Korea Financial Services Commission regulator has called on legislators to speed up passing of the country’s first cryptocurrency law in light of attacks against crypto exchanges.

Hong Seong-ki, head of the FSC’s virtual currency response team, says local exchanges are rife with security deficiencies and money laundering risks.

“While crypto markets have seen rapid growth, such trading platforms don’t seem to be well-enough prepared in terms of security,” says Hong in an interview with Bloomberg.

“We’re trying to legislate the most urgent and important things first, aiming for money-laundering prevention and investor protection. The bill should be passed as soon as possible,” he adds.

Two South Korean cryptocurrencies were targeted last month by hackers who made off with millions of dollars in Bitcoin and Ethereum as well as other cryptocurrencies.

READ MORE: Hackers snatch South Korean exchange’s tokens

The hacks against South Korean crypto exchanges, among the largest by trade volume in the world, were blamed for the decline in value of all cryptocurrencies, which have recovered from losses this week.

In March, a ruling-party legislator presented a draft bill contemplating FSC direct supervision of crypto exchanges. The law has yet to be passed by the National Assembly.

Hong believes lawmakers will sign the bill before the end of 2018. He notes that the passing of the law does not mean the government or the FSC officially endorse cryptocurrencies.

READ MORE: South Korea begins crypto, blockchain regulatory process