South Korean regulators are reportedly strengthening the regulation and monitoring of digital currencies including bitcoin.
South Korea's digital currency task force - a group comprising of the country's central bank, financial regulators and digital currency companies - have discussed increased regulatory oversight into trading and business practices as a means to further consumer protection efforts.
The meeting, which was attended by the National Tax Service and the Korea Fair Trade Commission also saw plans drawn toward strengthening user authentication procedures at exchanges as well as 'suspicious transaction reporting' systems at banks for transactions related to digital currencies.
South Korean authorities will also reportedly recommend digital currency exchanges to include consumer protection measures when providing services.
Notably, the report also suggests that authorities will "Punish" initial coin offering fundraising platforms for violating the capital market act by raising funds through stock issuance using digital currencies.
As reported in July, a set of bills leading to a regulatory framework for digital currencies could soon see the likes of Bitcoin and Ethereum legalized and regulated in South Korea.
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