South Korea stated its position on a total ban on encrypted currency transactions

nBankruptcy comment: Earlier, South Korea’s local media have reported that South Korea’s financial regulators consider a total ban on encrypted currency transactions, thus, South Korea’s top financial regulator on Monday’s luncheon elucidated the relevant position. According to South Korean media reports, the Financial Services Commission (FSC) is indeed considering restricting the move to encrypt currency transactions, but whether it is to be banned completely may require some legal basis. Therefore, South Korea’s Yonhap News Agency believes that the government’s measures on the virtual currency may not be a full prohibition of such a one-sided supervision of virtual currency transactions, and may take measures to limit the amount of investment and investment eligibility.n
nTranslation: Clovern
South Korea’s local media reported that South Korea’s top financial regulator has been considering banning all cryptocurrencies (especially bitcoin transactions), after which the country’s top financial regulator clarified its position.n
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Regulators discuss regulatory scopen


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Choi Jong-ku, chairman of the Financial Services Committee (FSC)n
Reported last Friday that South Korean regulators are considering banning all types of cryptocurrencies. Among them, Hankyung quoted government officials as saying:n
n”We think that virtual currency trading is a deceptive way of misleading people and similar currencies and is therefore actively considering banning domestic exchanges.”n
nAnd this week, according to South Korea’s Yonhap News Agency, Choi Jong-ku, chairman of the Financial Services Committee, clarified to reporters at the luncheon: “The FSC is indeed working out some measures to limit crypto-currency transactions to some extent.” Meanwhile, It is also acknowledged that these measures include “a total ban.” The news agency added: “These restrictions are designed to minimize the side effects of bitcoin trading and reduce speculative investment.” “Asia’s Economy” quoted Choi as saying:n
n”We’re talking about the extent to which the government regulates cryptocurrencies, including whether to ban deals.”n
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Legal prohibition is required for a total ban – ministries and commissions disagreen


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The Chair pointed out that the Ministry of Justice is currently reviewing the measures to regulate cryptocurrencies. News.itcoin.com reported last week that the department is responsible for managing the new virtual currency working group, “establishing and implementing regulatory measures through negotiations between relevant ministries.”n
In a speech to Kim Yong-beom, the deputy chairman of the FSC, the “Joongang Daily” in South Korea said on Monday:n
n”There are opinions that we should quickly ban virtual currency trading within the working group, but we must first fully analyze the legal basis and market impact.”n
nChoi has confirmed that “(all transactions are forbidden) must have a legal basis.” In addition, the media pointed out that “it is a well-known fact that there is a big difference between various ministries on the legal basis for prohibiting all transactions.”n
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It is not the first time that the exchange is regulatedn
Maekyung details members of the Virtual Currency Working Group that include not only members of the financial sector but also the Ministry of Planning, the Fair Trading Commission, the National Tax Office and the National Police Agency. The media pointed out that “the Ministry of Justice requires strict regulation of the transaction, but the Ministry of Finance and the Financial Supervisory Commission are said to be slightly hesitant about it.”n

FSC Vice Chair: Kim Yong-beomn
The media quoted Kim as saying: “The MOF focuses primarily on preventing corporate finance companies from hurrying to fictitious currency deals.”n
This is not the first time that South Korean regulators have hinted at restricting bitcoin trading. In November, News.Bitcoin.com reported that the FSC is proposing to regulate cryptocurrencies, arguing that these exchanges “must adhere to consumer protection standards.”n
South Korea’s Yonhap News Agency reiterated the early plans by regulators to regulate crypto currency exchanges and said:n
n”It is expected that the upcoming government action on the virtual currency will not be one-sided regulation such as a total ban on virtual currency transactions, but a regulatory measure that limits investment and investment eligibility.”n

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