South Korea will not ban cryptocurrencies after all

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South Korea’s finance minister, Kim Dong-yeon, said in response to a question from a lawmaker that the government will not ban cryptocurrency trading despite its plans to regulate it. Reported by Reuters today, he said:

“There is no intention to ban or suppress cryptocurrency [market],”

Despite China taking a harsh approach and closing down domestic exchanges, the minister added:

“Regulating exchanges is [the government]’s immediate task.”

The comments with regards to the government’s position come shortly after the South Korean government officially announced that they are looking to bring significant regulations to the cryptocurrency market. These include the introduction of rules that prevent the anonymous use of virtual accounts for trading, which means that citizens have to use their real names in order to open accounts at banks and on exchange platforms. Additionally, people not complying with the rules will face penalties.

South Korea is one of the world’s biggest players when it comes to the cryptocurrency market, with huge amounts of money flowing in and out of the market due to the large volume. The news that the country might ban the trading of digital currencies sent the whole market capitalisation into a downward spiral from which it is still trying to recover.

However, on January 11th, an official statement was released by the presidential office in South Korea saying that the cryptocurrency banĀ “is one of the measures prepared by the Ministry of Justice, but it’s not a measure that has been finalized.”

Photo credit: Hacked

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