South Korean Financial Regulator Won’t Limit Bitcoin Trading

Crime, News, Regulation | November 24, 2017 By:

Choe Heung-sik, the governor of South Korea’s Financial Supervisory Service (FSS), said  it has no plans to regulate bitcoin trading.

Heung-sik said that while they are monitoring the practice of cryptocurrency trading, they don’t have plans right now to directly supervise exchanges. He said supervision will come only after the legal recognition of cryptocurrencies as a legitimate currency.

The governor added that the South Korean government believes that cryptocurrencies do not function as a payment tool and remain as subjects of speculation. Thus, the FSS does not see bitcoin falling under the category of financial products or service.

“It is the same with the fact that we don’t regulate or supervise casinos,” Heung-sik said. “Though there could be concerns on excessive gambling, that does not provide grounds for the FSS to control casino practices. Though we are monitoring the practice of cryptocurrency trading, we don’t have plans right now to directly supervise exchanges. Supervision will come only after the legal recognition of digital tokens as a legitimate currency.”

The latest statement comes after the server of Bithumb, one of the largest exchanges in the world operating in Korea, went out of action earlier this month. Bithumb customers have filed a class action lawsuit following the server outage, which cost traders hundreds of millions of won, occurring at the height of frenzied Bitcoin Cash trading.