South Korea Cryptocurreny Crackdown: Finance Minister Says Government Will Not Ban Trading

Investing, News, Regulation | January 31, 2018 By:

In the first positive remarks in weeks, South Korea’s finance minister said the government has no plans to shut down cryptocurrency trading. The news comes as strongly increased regulation in the country led to fears that a China-style ban was in the works.

Kim Dong-Yeon put an end to the sometimes murky and conflicting comments emerging from various official and banking authorities.  “There is no intention to ban or suppress cryptocurrency (market),” Kim said.

However, the government’s is focused on increased regulation, he added. The country’s customs service announced before his remarks that it had uncovered illegal cryptocurrency foreign exchange trading worth nearly $600 million.

“Customs service has been closely looking at illegal foreign exchange trading using cryptocurrency as part of the government’s task force,” the announcement said.

South Korea has been among the world’s most active cryptocurrency trading markets. The government previously said it was considering a shutdown on local exchanges, but then walked back those remarks, saying a shutdown was just one possibility among many being considered.

Staring Jan. 30, authorities mandated that only real-name bank accounts were to be used for cryptocurrency trading, a move to suppress alleged money-laundering.