Gov’t announces plans to regulate cryptocurrency trading

The Korean government was preparing a bill to ban the trading of virtual currency on domestic exchanges, which has thrown the cryptocurrency market into turmoil.

The government’s announcement during yesterday’s press briefing backpedaling on Justice Minister Park’s remarks last week on government plans to ban cryptocurrency trading, sent bitcoin prices plummeting.

But after the market’s sharp reaction to Park’s remarks, the Presidential office said hours later that a ban on the country’s virtual currency exchanges had not yet been finalized. The government had said that the fact the media is using the phrase ‘Kimchi premium’ reflects foreigners’ assessment that the Korean market is “abnormal.”

So have they banned cryptocurrency or not?

So, what’s the situation like right now? How are other countries dealing with digital currencies? So, the South Korean government has vowed special measures to clamp down on the overheated cryptocurrency market… maybe?

A shutdown of exchanges would be one of the goals we are aiming for. It has started to resemble gambling and speculation. The term “virtual currency” may not even be the right term. We would rather call it “a virtual token.

Via korea.net

To me, it feels like South Korea just hasn’t seen how you handle banning shit. Maybe they can learn from this nice, little “how to ban shit’ gif:

https://media1.giphy.com/media/Ki3PJaCggaPVS/giphy.gif?cid=e1bb72ff5a5e6684664d44556395cbed
Korea’s stance on banning cryptocurrencies

But, did they soften their stance on cryptocurrencies? Plans to ban the trading of virtual money aren’t in the pipeline yet, so they say. According to Jung Ki-joon, they will need to defer on how to handle the cryptocurrency affair going forward.

The government will push forward with the implementation of a real-name system for cryptocurrency transactions. At the same time, the government will crack down on illegal activities involving virtual money, including market manipulation, money laundering, and tax evasion through joint probes by the prosecution and police.

Via korea.net

So, the government will decide on a proposed shutdown of virtual currency exchanges after carrying out sufficient consultations with the related agencies, it seems.

Perhaps the ban only helped Bitcoin Prices in the end

In the meantime, it seems the government is going to keep pushing for real-name transactions and other anti-speculation measures as well as ordering banks to implement the new system as planned. And this new system would also allow for the establishment of a taxation plan for cryptocurrency transactions.

But then there are calls for the government to come up with long-term measures to effectively regulate cryptocurrencies and stabilize the market. With all the ongoing controversies surrounding the domestic cryptocurrency market? In what ways should the Korean government tackle the problems affecting cryptocurrencies, if at all? Leave your comments below.

Sources:

Image credit giphy.com