South Korea Government ‘Will Not Ban Or Suppress’ Cryptocurrency – Minister

Wilma Woo
January 31, 2018 · 6:30 am
South Korea’s government has confirmed it has “no intention” of banning or “suppressing” cryptocurrency trading in fresh comments on the industry.

‘No Intention To Ban’

In comments Wednesday quoted by Reuters, finance minister Kim Dong-yeon, who earlier in January said that a shutdown was still a possibility, finally ended apprehension surrounding the future of cryptocurrency trading in the country.

Kim had faced a 200,000-strong petition demanding he be fired from his position after the comments, which along with those by justice minister Park Sang-ki, sent shock waves through cryptocurrency markets and sparked public outrage.

South Korea won't ban crypto trading

“There is no intention to ban or suppress cryptocurrency,” he said.

The confirmation may come as less of a surprise to some, as Seoul moves forward with regulatory improvements to the exchange sector at breakneck speed in recent weeks.

In addition to tax and security obligations, an anonymous trading ban became law Tuesday, with exchanges now obliged to ensure account identities match those of bank accounts.

The pace of change is already causing teething problems, however, as Bitcoinist reported as the ban commenced that big-volume exchanges were finding it considerably easier to work with banks to stay compliant.

Conversely, smaller exchanges faced being cut off from the market through lack of compliance as banks failed to cope with demand. This, sources say, could see one million users caught out.

crypto exchange

Soeul Goes After Illegal Actors

Not just bonafide actors, but also the shadier side of South Korea’s trading market has caught the attention of regulators.

Customs in the country has announced it has uncovered “illegal foreign exchanges” involving cryptocurrency worth almost $600 million this week, with investigations ongoing.

The organization stated:

Customs service has been closely looking at illegal foreign exchange trading using cryptocurrency as part of the government’s task force.

Bitcoin prices have, meanwhile, stopped reacting to developments in South Korea’s regulation after Japan’s major hack and legal troubles at Tether stole the limelight.

What do you think about the latest developments in South Korea? Let us know in the comments below!

Images courtesy of Pxhere and Bitcoinist archives.

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