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South Korea simplifies on possible ban of all crypto transactions

Financial Services Commission (FSC) Chairman Choi Jong-Ku said on Monday that it was considering measures to restrict cryptocurrency transactions to some extent which includes “an all-out ban.”

The will target minimizing the side effects of Bitcoin transactions and reduce speculative investment.  However, the Ministry of Justice was reviewing measures of regulating the currency.

“We are discussing to what extent the government will regulate the trade. Including the prohibition of trade”. he said at an at a luncheon meeting on Monday.

The clarification comes after news spread on Friday that South Korea was already considering banning all kinds of transactions.

Also Read: South Korean Government prohibits Bitcoin Futures trading

Prohibiting cryptocurrencies would need a legal basis and a Virtual Currency Task Force is already in place to “set up and implement the regulatory measures through consultation between the related ministries.” It consists of the Ministry of Strategy and Finance, representatives from the financial sector and the Fair Trade Commission, the National Tax Service, and the National Police Agency.

It seems like South Korea could be consulting on the regulation among related ministries before taking action. Joongang Daily quoted FSC vice chairman Kim Yong-beom as saying they are analyzing the legal basis.

He said,

“There is an opinion that we should hurry to ban virtual currency transactions within the task force, but we will analyze the legal basis and the market impact in a comprehensive way”.

It says that the Virtual Currency Task Force is dividing with some favoring strong trade relations and some hesitant.

“The Ministry of Justice wants strong trade regulations, but the Ministry of Finance and the Financial Supervisory Commission are to be hesitant,” the publication states.

Kim was quotes as saying The Finance Ministry mainly focuses on preventing institutions from jumping into virtual currency transactions.

Read Next: South Korea finalizing regulation for crypto exchanges

News.Bitcoin.com reported in November of FSC proposal to regulate crypto exchanges saying they would be required to maintain standards that help protect customers.

“It is expecting that the government measures relate to virtual currency will not be a one-side regulation. But, that prohibits virtual currency trading altogether. But a regulation that limits investment amount and investment qualification”. Yonhap reiterated on plans to regulate exchanges.

The country also announced a ban on ICOs as a way of raising funds in September.

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Qadir AK

Qadir Ak - Co-founder of Coinpedia Blog - His interest as crypto Author, Editor, Speaker at cryptocurrency conference has made him known as passionate blogger and startup in Asia.

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