Yesterday, markets were shaken by the news about South Korea's drastic decision in regards to cryptocurrencies. However, South Korea Will Not Ban Cryptocurrency Trading, according to the latest statement from officials.
12 January, AtoZForex – Officials in South Korea – the Blue House, the official residence of the South Korean President, and the executive office, all have made a very serious joint announcement. The authorities have stated that there will be no cryptocurrency trading ban in the near future.
South Korea Will Not Ban Cryptocurrency Trading, Officials Say
South Korean officials’ announcement comes as a result of a massive backlash against the Ministry of Justice. The latter has independently shared its plans to ban cryptocurrency trading across the country. Earlier this week, the Ministry did not involve the Ministry of Strategy and Justice along with other government bodies into the decision making process. However, some of the officials have been within a special South Korean cryptocurrency regulation task force.
As per the Blue House remarks, more than 60 thousand citizens have voted in a petition for the resignation of the Head of Ministry of Justice Park Sang-ki. He has been the one, who informed the public about government’s intentions to suspend all cryptocurrency trading within the country.
Following Minister Park’s announcement, the Ministry of Strategy and Finance has made it clear that it does not support the decision to ban cryptocurrency trading. In fact, officials also stated that Ministry of Strategy and Finance only found out about Minister Park’s announcement via media reports. The decision for South Korean cryptocurrency ban was not approved by the task force.
Is the South Korean Cryptocurrency trading ban in the long term?
Back in 2016, the ex-South Korean President Park Geun-hye was impeached by the nation. During that time, millions of South Korean citizens have expressed their opinion and pushed until the court decided to process the impeachment.
Since that time, the voice of people in South Korea has been strong in terms of political decisions. The new government, led by President Moon Jae-in, has promised to listen to people.
Some time ago, a person from the South Korean cryptocurrency task force has highlighted that the country will follow the regulatory plan that is outlined by the major regions, such as US and Japan. The statement reads:
“The South Korean government has no other choice but to follow the regulatory frameworks and trends established by other leading governments. While there certainly exists a negative reputation attached to the cryptocurrencies, the government’s stance is to allow what has to be allowed, for the benefit of the South Korean market.”
Thus, even in the long-term, it is likely that South Korea will not ban cryptocurrency trading altogether in the country.
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