IndexThe proposed lawSix conditions must be metNew cryptocurrency exchanges proliferate in South Korea despite regulationThe Bank of Korea (BoK), Korea's central bank of the South, launched a cryptocurrency task force to explore the effects of the technology on the financial system. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay According to a report by local news agency Pulse News, the bank said that eight departments, including the financial stability and monetary policy units, will participate in the task force to study the impacts of the digital currency. The new group will be administered and serviced by the BoK's Payments and Settlement Department and will be led by Shin Ho-soon, deputy governor of the central bank, the report added. As part of the project, the BoK is also looking to explore a central bank-backed digital currency. The announcement follows concerns raised in South Korea that the drastic rise in cryptocurrency prices could impact the traditional financial system. Earlier this week, six unnamed banks in South Korea were investigated by the Korea Financial Intelligence Unit and the Financial Supervision Service for their dealings with the country's banks. Bitcoin exchange ecosystem. Regulators indicated at the time that they were examining whether banks comply with their anti-money laundering (AML) obligations when transacting with cryptocurrency exchanges. The government already said last month it would move to apply greater controls amid rising trading volume at stock exchanges, including a possible ban on anonymous trading. New reports suggest that the South Korean government is stepping up its actions against the country's bitcoin exchanges. The South Korean government is preparing a bill that seeks to ban all transactions involving cryptocurrencies, including bitcoin, unless they occur through exchanges that meet six conditions. The South Korean government is preparing a bill to amend the Law on Regulation of Similar Reception to include provisions for cryptocurrency transactions. “The purpose of this law is to protect good traders and establish sound financial order by regulating similar receiving behavior,” states Article 1 of the law. Six conditions must all be met Recognizing that cryptocurrency transactions are already happening in large volumes, regulators have made provisions to allow cryptocurrency exchanges to operate legally. Six conditions have been named which must all be met and "a presidential decree will provide additional conditions", client funds must be kept segregated. Exchanges must also provide users with in-depth explanations of investment risks. They must confirm users' real names. they must establish an adequate anti-money laundering system and must also have an asset protection system such as cryptographic key dispersal. They must increase transparency by disclosing transaction details to the public. Cryptocurrency Crackdown After Justice Minister Park Sang-Ki announced that the South Korean government was considering making cryptocurrency trading illegal, the broad cryptocurrency market suffered another sharp sell-off. Bitcoin and Ethereum both fell 14% on the news. “There are major concerns regarding virtual currencies and the Ministry of Justice is essentially preparing a.