Worldwide, the cryptocurrencies are increasingly into the spotlight. South Korea is nothing that has refrained from commenting. The country has also come up and announced its views, happenings, regulations on cryptocurrencies. Here goes:
Recently, the country has thrown down the gauntlet on cryptocurrency speculation. In the initial days of this week, the country’s Financial Services Commission enacted a series of rules that it hopes will reduce room for cryptocurrency transactions to be exploited for illegal activities such as crimes, money laundering, and tax evasion.
Learn more about South Korea’s problem of illegal activities here: https://www.forbes.com/sites/jessedamiani/2018/01/31/south-korean-customs-reveals-nearly-600m-in-illegal-crypto-trading/#48c8c0c3101d
In the country, a defense sector did come into the picture:
- The Defense Ministry has reportedly warned soldiers against trading cryptocurrencies.
- The military may view cryptocurrency trading as a form of gambling as crypto exchanges have gone largely unregulated in the country.
Earlier this month, the government proposed banning all cryptocurrency trading. The move set bitcoin prices plummeting and caused mass panic. But finally, a disclosure is out which concludes that the country has no plans of banning cryptocurrencies but will closely regulate them.
The announcement follows reports earlier this month that the country was considering shutting down trading because of tax evasion (as mentioned above), which led to massive disruption on trading platforms around the world. However, the government does plan to tighten regulation and crack down on illegal practices within the area.
It’s not yet clear exactly how the government plans to tighten regulation, although it has now imposed new rules that stipulate only real-name bank accounts can be used for trading, which it hopes will help tackle money laundering and other crimes.
The FM’s exact words were, “There is no intention to ban or suppress cryptocurrency” and highlighting that the government’s immediate task is to regulate exchanges.
Reinforcing Seoul’s intent to tighten the screws on a market widely seen as opaque and risky by global policymakers, the country’s customs earlier this week announced it had uncovered illegal cryptocurrency foreign exchange trading worth nearly $600 million.
Therefore in conclusion: Rules in South Korea that tackle anonymity and money laundering in the cryptocurrency space take effect this week. The rules bring greater legitimacy to the cryptocurrency markets and are positive in the long term, market participants say. Plans to introduce regulations in South Korea had spooked investors earlier this month.
Let’s see whether or not South Korea well with the crypto-world.