The South Korean government clarified that there will be no ban on encrypted currency transactions in the near future. In a statement, a South Korean government spokesman said:
“First, the South Korean government will pursue the crackdown on anonymous cryptocurrency trading accounts and will punish market manipulation, money laundering, and fraudulent transactions through joint investigations participated by the local law enforcement and financial authorities.
Second, the cryptocurrency trading ban proposal introduced by Justice Minister Park Sang-ki was a suggestion made by the Justice Ministry on December 28 to bring speculation within the cryptocurrency market under control. The proposal will be discussed and changed by the task force participated by the Ministry of Strategy and Finance, central bank, Fair Trade Commission, and other agencies.
Third, excessive speculation and fraudulent activities will be met with severe consequences. But, the government will support and even finance blockchain technology development.”
This proposal will be discussed and revised by the working group with the participation of the Ministry of Strategy and Finance, the Central Bank, the Fair Trade Commission and other agencies. Third, excessive speculation and fraud can have serious consequences. However, the government will support and even fund the development of blockchain technology.
The confirmation by the South Korean government is a welcome news for crypto-currency enthusiasts. Bitcoin fell 12% after the news of the ban, while the ether dropped 7.6%. At present, the price of bitcoin is stable at around $14,400. Both cryptocurrencies are popular in South Korea, with 20% of Bitcoin transactions initiated by Korean users and over 10% of Ether transactions traded in won.
As of January 20, foreigners and minor investors will be barred from trading cryptocurrencies in the country, and the cryptocurrency exchange of South Korea is also expected to re-register with new subscribers and investors by the end of this month.