Good news arrives from South Korea to the cryptocurrency world. In a week in which just three top 20 cryptocurrencies are operating positively, a South Korean Minister has announced that the country does not want to ban cryptocurrencies. This information is important for investors and cryptocurrency users in the Asian country that have been worried about a possible ban or tougher regulations.
No Ban on Cryptocurrencies
The Finance Minister Kim Dong-yeon commented on Wednesday that the government has no plans to shut down cryptocurrency trading. “There is no intention to ban or suppress cryptocurrency (market),” said the Minister adding that the main intention is to regulate exchanges.
South Korean authorities have been pushing for tighter regulations in the market. South Korea is one of the countries with the most trading volume in the world and with a society deeply interested in cryptocurrencies. Thousands of millennials have been investing in cryptocurrencies during the last year in a cryptocurrency market that reached unprecedented levels.
The authorities are trying to warn its citizens about the risks associated with cryptocurrency investments. Policy makers have been calling the market a bubble and at the same time, all over the world, individuals were taking loans in order to invest in it.
Among the possible solutions that the government had in mind there was one regarding the possibility to ban all cryptocurrency exchanges from operating in the country. The cryptocurrency market has reacted in negative terms when this information spread just two weeks ago. Every single cryptocurrency in the market suffered strong losses (more than 10%).
The last year, South Korea has decided to ban Initial Coin Offerings (ICOs) and margin trading. At this time, experts in the matter commented that South Korea and its government did not want to ban ICOs but they did it in order to lose control on the market.
The truth is that with ICOs increasing and few or no regulations, some of them were scam or just a way to steal the funds of the investors. Another reason to ban these activities was that cryptocurrencies were used as a way to avoid taxes control. Moving money abroad was never so easy as now with cryptocurrencies.
Cryptocurrency exchanges need to follow strict regulations in order to keep operating. Something that Bithumb, one of the most important cryptocurrency exchanges in the country, supports. A regulated market is also a legitimate one.
Besides that, the government has also established that anonymous bank accounts must be banned from operating in the market. The intention is to reduce money-laundering crimes and other activities like terrorism financing or tax avoidance.
Cryptocurrency Adoption in South Korea
The South Korean society feels that cryptocurrency trading must be permitted. That’s why they have gathered more than 200k signatures to ask the government to not ban cryptocurrencies and stop with hard regulations. The South Korean authorities now need to give an answer and explain what they will do with the cryptocurrency market. At the same time, cryptocurrencies in the countries register more trades than the KOSDAQ, South Korea’s main stock market.
Investors need a clear answer from the government. But a cryptocurrency trading ban is unlikely. One of the biggest pension funds in the world has invested millions of won in cryptocurrencies and exchanges. Banning such an important market is not rational