Daily Management Review

South Korean Government Does Not Intend To Close Down Cryptocurrency Exchanges


01/31/2018




South Korean Government Does Not Intend To Close Down Cryptocurrency Exchanges
Cryptocurrency investors and traders In South Korea were relieved after the finance minister of the country said that the government does not intend to ban cryptocurrency trading. Following news of stricter regulatory norms over cryptocurrency, investors in South Korea were speculative about the possibility of the country going the China way of stopping virtual coin platforms.
 
Additionally, the investors outside of South Korea were also worried about the future of virtual exchanges there after conflicting comments from government officials about banning of digital coin exchanges. South Korea is one of the largest hubs for trading in cryptocurrencies. Therefore the comments from the finance minister Kim Dong-yeon, came as a big relief.
 
“There is no intention to ban or suppress cryptocurrency (market),” Kim said, and added that regulation of exchanges was the immediate focus of the government.
 
Earlier on Wednesday, the customs department in South Korea revealed instances of illegal cryptocurrency foreign exchange trading that totaled to about $600 million. This revelation has reinforced the intentions of the government about cryptocurrency exchanges. 
 
“Customs service has been closely looking at illegal foreign exchange trading using cryptocurrency as part of the government’s task force,” it said.
 
In South Korea, the popularity of cryptocurrency as a commodity has even drawn students and housewives into the market and this trend has forced South Korean government to push forward the drive for broad regulatory oversight of cryptocurrency trading. There have also been repeated warnings about cryptocurrency trading from all over the world about the market being a bubble.
 
Earlier, the market was sent into turmoil which brought down bitcoin prices after Seoul has commented that there was serious consideration by the government about closure of local cryptocurrency exchanges. Later on, government officials confirmed that a final decision is still pending and closure of exchanges was only one of the options that were being considered. 
 
The South Korean customs meanwhile said that nearly 637.5 billion won ($596.02 million) was the combined value of foreign exchange crimes that had been detected.
 
The department said that the bulk of the cryptocurrency crimes comprised of illegal foreign currency trading of 472.3 billion. No further details were given by it.
 
One of the cases involved an illegal FX agency collecting about 1.7 billion won ($1.59 million) through “electric wallet” coins from the local residents for transferring the money to a partner agent abroad. According t thee statement, the coins were then cashed by the foreign partner and the settlement was distributed to clients in that foreign country.
 
Foreign exchange services are allowed to be conducted only by licensed banks and brokers in South Korea. And reasons for transfer of more than $3000, along with relevant documents, out of the country at one time, has to be given by the local companies as well as residents to tax authorities. Similar documents have to be submitted for foreign transfer of more than $50,000 yearly.
 
(Source:www.reuters.com)






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