South Korea and Cryptocurrency

Confirmed: South Korea Will Not Ban Cryptocurrency Trading


The authorities of South Korea responded to a public petition calling not to ban cryptocurrencies in the country. The news was reported by kryptomoney.com.

On February 14, the South Korean authorities issued another batch of comments on the direction in which the government is moving in the sense of cryptocurrency regulation. Earlier, the authorities argued that the meaning of this course is to “prevent crimes and get rid of uncertainty.”

South Korea and Cryptocurrency Trading

The head of the Ministry for coordination of government policy Hong Nam-Ki made an official response in the form of a press release designed to calm the storm of passions, which rose after the government made it clear that it intends to completely ban cryptocurrencies. Resentment resulted in a petition posted on the website of the presidential administration and received 200,000 signatures, which requires the authorities to respond to it.

Hong said:

“The fundamental rule that governs the government is to prevent any crime or uncertainty in connection with cryptocurrency trading while developing blockchain technology. However, the government still has a disagreement on how to act: opinions range from an unconditional ban on trading to the creation of institutions that will be able to streamline the turnover of cryptocurrencies.”

Thus, the Minister of justice Park sang-Ki proposed to prohibit cryptocurrency trading by law, which caused an explosion of indignation on the part of the cryptocurrency community. The reaction forced the authorities to explain their position-on January 31, Finance Minister Kim Dong-Young said that the government “has no intention of prohibiting or limiting cryptocurrencies”.

The Korean government’s statement, which emphasizes the existence of “many opinions”, suggests that regulators will need time to make a final decision. This statement was preceded by the appearance of information from a certain government insider, hinting that the authorities intend to establish a licensing system for cryptocurrency exchanges. Allegedly, this may happen after the elections in June 2018.

In addition, the unnamed official said that the new system will be built on the model of the new York Regulations. A similar step was taken in Japan, where, since last year, the authorities have gradually introduced a system of licensing cryptocurrency exchanges.

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