South Korea supports cryptocurrency trading in case normal transactions are made. This latest news appear as a positive sign for numerous global cryptocurrency investors. Will South Korea set out cryptocurrency regulations?
20 February, AtoZForex – It appears that South Korean government is finally softening its stance in regards to the cryptocurrency trading. According to the local news reports, the governor of the Financial Supervisory Service (FSS), Choe Heung-sik has stated that the South Korean officials “will support if normal transactions are made.”
South Korea supports cryptocurrency trading with normal transactions
Following a series of mixed signals from the South Korean officials, local media reports are now claiming that the authorities turned positive in regards to the cryptocurrency markets. During a meeting with representatives from domestic cryptocurrency exchanges, Choe has also stated that the government will “encourage” banks to deal with cryptocurrency exchanges, according to the local reports.
It is expected that this news will be positively welcomed by the South Korean cryptocurrency markets. Also, global markets will most likely see an uptrend following these remarks from South Korean officials. In fact, earlier this year, some of the South Korean officials have been holding quite strict position in relation to the digital currencies.
According to the recent updates, the government has decided not to ban cryptocurrency trading across the country, but to regulate it. As per the local media reports, the government official that has connection to the digital currency task force has stated earlier last week:
“We are positively considering the adoption of an exchange approval system as the additional regulation on cryptocurrencies. We are most likely benchmark the model of the State of New York that gives a selective permission .”
South Korean Anonymous Cryptocurrency Trading Ban
South Korean ban on the anonymous cryptocurrency accounts have been in place since 30th January. According to this law, all the cryptocurrency transactions should be conducted through accounts that are linked to the real identities of users.
Such move appears as a part of the financial regulator’s attempt to solidify the “know-your-customer” (KYC) compliance to limit cryptocurrency speculation. 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.
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