Regulator FSC enforces South Korea Bitcoin Futures Trading Ban

Regulator FSC enforces South Korea Bitcoin Futures Trading Ban despite the initial plan of some South Korean Exchanges to offer Bitcoin futures trading. What is happening to Bitcoin in South Korea?

7 December, AtoZForex Two world’s biggest futures exchanges, CME and CBOE, have decided to launch Bitcoin futures trading earlier this week. Following the move, the prices of Bitcoin have skyrocketed, passing the $15,000 level.

South Korea Cryptocurrency Regulations

Yet, South Korean officials feel somewhat different from their US counterparts in regards to the leading coin of the top cryptocurrencies. The South Korean government emerges to be struggling to understand and accept the digital currencies. In fact, the most recent move from the South Korean authorities involves the intention to regulate cryptocurrency exchanges. They also plan to impose a tax on the cryptocurrency profits.

This Monday, the South Korean government has set out the new cryptocurrency task force. Specifically, according to some online reports, South Korean officials have established a “virtual currency countermeasure task force”. In an attempt to speed up the regulation, South Korean officials have agreed to set up a government measure to regulate the digital currency transactions. The regulatory activities would be carried out under the supervision of the Ministry of Justice.

In addition, the country has also prohibited Initial Coin Offerings (ICOs) across its territory.

South Korea Bitcoin Futures Trading Ban

South Korean residents have been always appearing as some of the most active cryptocurrency users. According to the CEO of South Korean exchange Korbit, Tony Lyu:

“Word just spreads really fast in Korea. Once people are invested, they want everyone else to join the party. There’s been this huge, almost a community movement around this.”

As a matter of fact, many global exchanges are planning on offering Bitcoin futures, for instance, Nasdaq. Moreover, the world biggest Bitcoin market, Japan is considering the foundation for Bitcoin futures trading, as well.

Earlier, South Korean exchanges were also looking into the opportunities to do so. Yet, considering the latest moves by the officials, the plans have changed. On the 5th December, Financial Services Commission of South Korea has ordered Korea Financial Investment Association members to halt the plans to offer Bitcoin futures.

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