South Korean Cryptocurrency Ban Will Not Happen, according to the latest statement by the South Korean Finance Minister, Kim Dong-yeon. The country will regulate the cryptocurrency exchanges as a mean to control the crypto craze.
31 January, AtoZForex – According to South Korean Finance Minister, Kim Dong-yeon, the country does not plan to ban cryptocurrency trading. Previously, there was a speculation that South Korea will move to ban the cryptocurrency trading across the country.
South Korean Cryptocurrency Ban Will Not Happen, Says Finance Minister
The news was based on the statement by Park Sang-ki, the Minister of Justice in South Korea. Yet, later on, South Korea officials stated that the Ministry of Justice did not involve the Ministry of Strategy and Justice along with other government bodies into the decision making process.
However, the latest news from South Korea states that the authorities have no intentions to ban the cryptocurrency trading. The Finance Minister has further added:
“Regulating exchanges is ‘s immediate task.”
The new framework also will be more spread out on foreigners that have been using South Korean cryptocurrency exchanges via a virtual bank account. The announcement by FSC has highlighted that minors and non-citizens will be limited from the new name verification service.
South Korean Cryptocurrency Exchange Scrutiny
The remarks from Kim have appeared after the country has already implemented the increase in the inspection of cryptocurrency trading.
However, besides the governmental intention to cap the cryptocurrency speculation, investors have welcomed the initiative. In the meantime, the spokesperson for the South Korean Financial Commission has stated that it was too early to discuss the effects of the law.
The 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.”
In addition, the South Korean government has stated that it is looking into the use of cryptocurrency in illegal foreign currency exchange.
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