South Korea Finance Minister Endorses Blockchain


Following the series of mixed messages from South Korean officials, Finance Minister of South Korea has made it clear – the country has a positive and open stance in regards to Blockchain and cryptocurrencies. As South Korea Finance Minister Endorses Blockchain, he also suggests closer collaboration with China in regards to this technology. 

5 February, AtoZForex South Korea Finance Minister Kim Dong-yeon has paid a visit to China for the economic talks. Mr. Dong-yeon has given a speech there in regards to Blockchain and its influence on the world.

South Korea Finance Minister Endorses Blockchain

Kim Dong-yeon has spoken positively in relation to Blockchain technology, stating that “Blockchain technology can disrupt and revolutionize the world,” according to the local media sources.

Mr. Dong-yeon has held a meeting with Zhou Xiaochuan, the governor of the Central Chinese Bank, the People’s Bank of China. He has stated that South Korea needs more cooperation with China on Blockchain technology.

Another local media report also mentions that Kim Dong-yeon has stressed that the South Korean Finance Ministry did not have any plans to ban or limit cryptocurrencies within the country. He has been quoted as saying:

“Blockchain technology is an important technological breakthrough to fuel the fourth industrial revolution and as such, the ministry will take a cautious approach in regulating the cryptocurrency market. For negative use cases of cryptocurrencies, the ministry will impose strict regulations.”

Mr. Dong-yeon has made it clear that he believes that Blockchain and cryptocurrency market are closely related. This is despite some people stating that the world economy can enjoy the benefits of Blockchain technology without using cryptocurrencies.

Yet, Kim Dong-yeon has stated:

“For open-source blockchain networks, cryptocurrencies are necessary as incentives for individuals to participate in the network.”

South Korea Cryptocurrency Market Environment

Kim Dong-yeon’s positive remarks in relation to Blockchain and cryptocurrencies appears after a period of strict limitations on digital currency investing and exchanges in South Korea. The country has moved to the regulation of anonymous cryptocurrency trading.

The South Korean regulator has published a document earlier stating that it would only allow trading in cryptocurrencies from real-name bank accounts. Those rules allowed banks to comply with their know-your-customer and anti-money laundering obligations.

According to the document, the measures were planned to “reduce room for cryptocurrency transactions to be exploited for illegal activities, such as crimes, money laundering and tax evasion.”

The FSC further stated that the new framework has been determined as a result of the inspection of local anonymous cryptocurrency trading accounts. The scrutiny was assisted by six domestic banks and the Financial Intelligence Unit. In general, markets have appeared relatively positive following the implementation of the new South Korean cryptocurrency trading rules.

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