Earlier this week, a government official confirmed during a public press conference that the government has no intention of banning cryptocurrency trading in the near future. Jeong Ki-joon, who serves as current South Korean president, Moon Jae-in’s, executive office Blue House spokesperson, confirmed that South Korea will not ban cryptocurrency trading.In his announcement, the spokesperson stated that the government established a cryptocurrency regulation task force in order to compromise with the South Korean Justice Ministry’s proposal to ban all cryptocurrency trading and to implement regulatory policies that will foster the local cryptocurrency industry.However, Jeong did clarify some matters in the government’s future approach to cryptocurrency regulation. According to the spokesperson, the government firstly intends to address the issue of anonymous trading by implementing a real-life identity system.
In addition, the government will seek to introduce appropriate punishment for offenses such as market manipulation, and instances of fraud. The government intends to implement punishments by launching investigations conducted by financial and law enforcement authorities.Jeong also addressed the former cryptocurrency ban that was suggested by the Justice Ministry last month. The ban suggestion, which was submitted by the Justice Minister, Park Sang-ki, on December 28, was proposed in order to address the speculation associated with the cryptocurrency market. However, this proposal is likely to be debated and modified by the cryptocurrency task team and other financial agencies such as the Fair Trade Commission, the Ministry of Strategy, and the central bank.Lastly, the spokesperson cautioned that any fraudulent activities which increase speculation will be subject to severe punishments. Despite this, the South Korean government still remains supportive of the cryptocurrency industry and its underlying blockchain technology.The government recently introduced a ban which prohibits foreigners and minors from participating in cryptocurrency trading which is expected to be implemented this week.
Furthermore, South Korean banks will be allowed to issue virtual accounts to clients again by the end of January, using the new real-life identity system.The timing of the statement is perhaps curious as it was issued shortly after several high-ranking government officials received widespread criticism for their alleged lack of understanding of the cryptocurrency market. Some criticized officials included the National Assembly member and former member of Congress, Nam Kyung-pil.Despite the regulation tightening, the cryptocurrency market is still alive and thriving in South Korea.
The country’s major crypto exchanges such as Bithumb and Korbit have also expressed enthusiasm regarding the government’s latest plans for market regulation.According to a Bithumb spokesperson, the massive crypto exchange welcomed all practical regulatory policies and that they intended to be compliant with all future regulations in order to contribute to a fair, honest, and transparent market.This article was originally published by Coin Telegraph.