The head of Korea’s regulator said the government is considering changing all internal shifts in cryptocurrency. Alternatively, the ban can only flow from law-breaking exchanges.
The continued disruption of South Korean decision-makers and officials who have submitted contradictory statements about the legality of internal credit cryptocurrency transactions has just taken another turn. Citing the head of the Financial Services Commission in South Korea (FSC), Reuters reports that the Korean government does not exclude the possibility of a complete closure of private cross-border exchanges.
Responding to the Korean Parliament’s questions, the chief of financial regulation said:
The government is considering closing all local currency exchanges or just those who have broken the law.
In a separate press conference yesterday, the central bank governor of Korea replied: “Cryptocurrency is not a legal currency and is not used as such.”
The close person comes in the days following a formal statement to the contrary from the official office and headquarters of the president. The spokesman for the agency stressed that any government repression would be extended to anonymous trading accounts and not to the broader market.
South Korea is one of the largest markets in the world for trading in cryptocurrency. Digital coins broke into Korean society to such an extent that the Korean Prime Minister, after an emergency meeting to discuss the adoption of cryptocurrencies, considered this phenomenon “pathological.”
The Korean government has already seen a response to a global ban, proposed initially by the justice minister, by citizens disappointed earlier this month. Also, the government’s finance ministry refused to approve a total ban on cryptocurrencies. “We do not share the same views as the Ministry of Justice about a possible ban on the exchange of cryptocurrency,” the Finance Ministry stated.
Korea’s increased control over cryptocurrency trading comes at a time when China is officially climbing its hostile position against the trade in cryptocurrency and mining.