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South Korea Is Not Banning Bitcoin, Financial Regulators Clarified

by | Jan 12, 2018 | Bitcoin, Latest Posts | 0 comments

Financial regulators Of South Korea Clarify The Bitcoin Banning Issue

According to Forbes, South Korea Is Not Banning Bitcoin Trade, Financial Regulators Clarified.

The regulators of South Korea have taken up an active role in dismissing the grapevine which is suggesting that the government has banned all cryptocurrency transactions.  This confusion got triggered in the aftermath of a local publication quoting a government official.

The authorised personnel is rumoured to have said that the country is considering bringing upon a ban for putting a leash on the growing crypto craze. Lee Nak-yeon the South Korean Prime Minister had announced that cryptocurrencies can “corrupt the nation’s youth.”

He had even urged regulators to come up with a task force which shall examine the instances of speculative investments and pyramid schemes. Choi Jong-ku, the Chairman of FSC (Financial Services Commission), the top financial watchdog of Korea announced that the ministries are holding discussions in regards to the trade regulation which needs to be brought about. The task forces set up by government bodies have not yet taken up a unified stand since some are expectant of fintech innovation whereas others are apprehensive of the ongoing scams. Choi had confirmed that the ultimate decision taken shall be in sync with a solid legal backing.

Douglas Crets, a seed investor in ALIS social media, the blockchain project is optimistic about the positivity of such regulations. He added that, “in the long term chess game of bitcoinization, regulation helps the government ‘process’ what’s happening and it makes it more legitimate for bigger institutional players to put funds into crypto currencies.”

Financial institutions have been banned by South Korean regulators from engaging in virtual currency dealings. The ban imposed on initial coin offering shall remain intact as of now. Six safeguards are also being pushed forward regulating the operation of crypto exchanges including submission of proof of income, confirming the user’s real name, providing cryptographic keys for establishing anti-money laundering (AML) systems, conducting face-to-face interviews for meeting the strict Know Your Customer (KYC) policies, supplying sufficient investment warnings, separation of fiat accounts etc.

Crets stated that, “regulation of the way in which exchanges work will weed out bad players, and make bitcoin more mainstream.” In comparison to its peers, the country has showed relatively higher enthusiasm in crypto dealing which was revealed thorough its premium price which is about $3500 more than the other exchanges operating globally. The limited supply of bitcoin, and its growing demand mostly in the finance field has caused BTC to shoot up by 20% in comparison to the mark-to-market. The entire bitcoin activity engaged in by the country accounts for below 7% of the global trade entered into by crypto dealings.

 

 

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