South Korea plans Ministry of Finance and China’s central bank to discuss encryption monetary policy

nRunaway Comment: Minister of Planning Korea’s Ministry of Finance and President of the People’s Bank of China discussed at a recent meeting countermeasures on the issue of cryptocurrency. South Korea Although a series of measures have recently been taken to regulate the local cryptocurrency trading, in general, there are no strict measures in China. For example, the exchange is not closed down. However, this meeting demonstrated the willingness of both parties to further strengthen cooperation on this issue and may mean the emergence of some new supervisory measures.n
nTranslation: Inan
China and South Korea Discuss Encryption Monetary Policyn
Last Friday, South Korea’s Minister of Planning and Finance Kim Dong-yan met with Zhou Xiaochuan, governor of the People’s Bank of China. It is reported that they not only discussed the economic problems of the two countries, but also discussed their respective encrypted monetary policies.n
China has banned encrypted currency trading, including the closure of the country’s cryptocurrency exchange. South Korea released some countermeasures against cryptocurrencies starting from December last year. On this issue, the South Korean government has taken various measures into consideration, including the complete ban policy proposed by the Ministry of Justice and some more liberal policies. Late last month, South Korean regulators have ordered all cryptocurrencies to implement a new real-name account system.n

Zhou Xiaochuan and Jin Dong Yan metn
According to South Korean media Newsis reported:n
n”Both parties exchanged views on the recent situation and countermeasures in the virtual currency issue between the two countries.”n
nAccording to South Korea’s “Asia Today” report, at the meeting, the PBC reiterated its close cooperation with the South Korean government. South Korea’s Ministry of Planning and Finance also said it will continue to work with the People’s Bank of China through “high-level consultation channels.”n
South Korea to avoid closing the exchangen
Although the South Korean government has repeatedly stressed the importance of containing stringent measures to curb overheating in the cryptocurrency market, it has so far avoided to close the cryptocurrency exchange.n
According to YTN, Minister Kim pointed out at last Wednesday’s Parliamentary Program and Finance Committee meeting that if the exchange is closed, there may be a problem of underground transactions and foreign currency leakage. South Korean media “Money Today” quoted him as saying:n
n”The government has no intention of eliminating or suppressing the virtual currency … I am discussing urgency with the government’s cryptocurrency work because virtual trading facilities (exchanges) governed by the e-commerce law are the biggest issues.”n
nCryptocurrencies Exchanges are not financial entities in Korea; they are governed by the Electronic Commerce Law. However, such agencies are registered and administered in Japan through national financial authorities.n
The South Korean government announced in early January that it would work with China and Japan to solve the problem of cryptocurrency speculation. In addition, the Vice Chairman of the Korea Financial Services Committee (FSC) also called for the cooperation of member states and organizations of the Financial Stability Board to curb cryptocurrency transactions.n

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