South Korea to take another move: the government introduced a bill requiring public officials to declare the investment in encrypted currency, the exchange banned foreign residents involved in cryptocurrency transactions

nRunaway Comment: As South Korea’s government ministry announced last week that the drafting act forbid a series of oolongs to block cryptocurrencies in a comprehensive manner, resulting in a highly volatile currency market, different sectors of the South Korean government have not yet reached a consensus on the regulation of cryptocurrencies Consensus. Recently, however, members of the Security Council of the National Assembly of South Korea again introduced a new law requiring civil servants to disclose their holdings of cryptocurrency assets in response to allegations of insider trading and market manipulation of officials during the previous market turmoil. In addition, many South Korean exchanges also respond to government regulation, announcing the ban on the participation of foreign residents in encrypted currency transactions.n
nTranslation: Clovern
South Korea has enacted a new law requiring public officials to declare its encrypted currency investment. Not long ago, there was controversy over the regulation of currency encryption in the South Korean government, with the emergence of illegal activities including insider trading and market manipulation.n
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Public officials declare bills that hold crypto-currency assetsn
Chung Dong-yong, a member of the South Korean National Assembly’s Administrative and Security Committee, has introduced a bill that requires the addition of cryptocurrency assets such as Bitcoin, Ether and Ruipo to the currency of South Korea, according to local South Korean media reports. Public information disclosure list.n
Suwan News quoted him as saying that he explained that “the current Public Service Ethics does not include cryptocurrencies recently appearing as a means of adding value to property.” The media added that the bill was made by legislator Kwon Eun -hee, Park Joo-hyun, Yoon Young-il, Lee Chan-yeol, Jang Jeong-sook, Chun Jung-bae and Kim Doo-kwan.n
The act amends the Official Ethics Act by requiring public servants to declare a cryptocurrency worth 10 million won (about $ 9,350). Money Today reports in detail that Chung advised fining and disciplinary action if officials provided false or misleading information about the cryptocurrencies held by them. The Hankyoreh then quoted his statement as saying:n
n”The government is taking the lead now in the area of ​​cryptocurrency regulation, and the public sector should be the first to disclose how it can add value to its assets in a cryptocurrency environment to improve asset transparency.”n
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Recent controversyn
Since the South Korean government announced the monitoring of cryptocurrencies in December last year, some controversy and controversy emerged among officials.n
A number of petitions were filed against the crowded monetary regulator, one petition entitled “Has the government ever dreamed of bringing people a happy life?” By the time of writing, 223,055 people signed the petition. According to the provisions of Cheong Wa Dae, as long as the petition has more than 200,000 signatures, the government must respond.n
Recently, due to improper coordination among various government departments, the Ministry of Justice announced a moratorium on the implementation of a ban on encrypted currency transactions. Subsequently, other financial regulators in South Korea quickly set aside their relations.n
Last week, financial supervisors (FSS) staff were charged with insider trading in advance of being aware of cryptocurrency regulatory information. Currently, the agency is investigating this. However, Yonhap reported that according to lawyer Yang Ji Min, “cryptocurrencies are not financial products at the moment, and there is” no punitive measure for such conduct. “n
In the meantime, news.Bitcoin.com reported earlier that councilor Ha Tae-keung presented a piece of evidence that the government’s “40-minute ban” triggered market manipulation. The Korea Economic Daily quoted Ha’s comments as saying that “the government should investigate the officials involved and find out who leaked the news.” The Prime Minister’s office has now denied allegations of deliberate disclosure of information.n
Hankyoreh quoted Chung as saying:n
n”We need to investigate whether there is any misconduct and disclose the status of our assets.”n
nIn addition, while requiring public officers to disclose the disclosure of cryptocurrencies, several South Korean exchanges have also announced that foreign residents are prohibited from trading cryptocurrencies.n
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More stringent cryptocurrency regulationn
In recent days, there has been a strong turmoil in the global cryptocurrency market as rumors suggest that the South Korean government plans to ban a total currency transaction in the country. Shortly after the news release, the total value of cryptocurrencies fell nearly 50%, causing significant financial losses to many traders around the world.n
Subsequently, government officials said the ban on digital currency exchanges is just one possible measure to enforce regulation. Since then, the market value of cryptocurrencies dropped to 428 billion U.S. dollars and then stabilized at 620 billion U.S. dollars. The new regulatory measures are designed to limit the Korean exchange, not to allow unauthorized trading of digital assets. Exchanges that do not fully implement the KYC / AML process may also be barred from trading due to new regulations.n
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Prohibition of foreign residents involved in the transactionn
South Korea is not the only country that regulates encrypted currency transactions. In late 2017, Chinese regulators forced the closure of several major cryptocurrencies. The closure of the trading platform in China has prompted a large number of Chinese traders to withdraw from China and flow to exchanges in South Korea, Japan, Singapore and Hong Kong.n
A recent article from Trustnodes reports that Korbit, a major South Korean cryptocurrency exchange, will bar foreign residents from trading cryptocurrencies. The report states:n
n”If you are not a resident of South Korea, you will be stopped from depositing Korean won in a Korean virtual currency exchange in January when you switch to a new Korean won deposit, which applies to both domestic and non-local citizens.”n
nThe article pointed out that regulators also plan to take capital controls and other measures to limit the capital flight generated by the encrypted currency at the level of 5,000 US dollars. Experts also believe that the new regulatory measures in South Korea may force western cryptocurrency companies to stop their operations in South Korea or even to completely withdraw from the country. Analysts believe that more cryptocurrencies may shift from China and South Korea to Japan, a country that has a more favorable regulatory environment for cryptocurrencies and blockchains.n

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