At a press conference on 15 January, the representative of the government of South Korea announced that the ban on the sale of cryptocurrencies is not planned in the near future. This was told by Jeong Ki-Joon (Jeong Ki-joon), a press-the Secretary of presidential administration of the country moon Jaina.
In an official statement, Ki-Jun said that the working group for regulation of cryptocurrency created by the government, will improve and change the original proposal of the Ministry of justice on the prohibition of trade digital currencies and the introduction of practical rules for the development of the cryptocurrency market. Jeong Ki-Joon said:
«First, the South Korean government will continue to struggle with anonymous accounts to trade cryptocurrency, and will to punish market manipulation, money laundering and fraudulent transactions by means of joint investigation, which will involve local law enforcement and financial authorities.
Secondly, as regards the proposal to ban trade cryptocurrencies made by the Minister of justice Park sang-Ki (Park Sang-ki) December 28, designed to eliminate speculation on the controlled cryptocurrency market. The proposal will be discussed and modified by the working group, which includes the Ministry of strategy and Finance, the Central Bank, the fair trade Commission and other agencies.
Thirdly, the participants of excessive speculation and fraud will face serious consequences. However, the government will support and even Fund the development of the technology of the blockchain».
It is expected that the ban on trade in crypto-currencies for foreigners and minor investors will enter into force on January 20, and by the end of this month, the South Korean stock exchange will reopen registration for new users and investors.
The statement of the government of South Korea came after several senior officials, including Us Hemphill (Nam Kyung-pil), a former Congressman and member of the National Assembly, criticized the government for its failure to understand and properly regulate the cryptocurrency market.
«Call bitcoin «starting from the nozzle bubble» is to make fun of Korean people. It’s unreasonable condemnation of cryptocurrency. The government should focus on stimulating the cryptocurrency market, if it does not want to lag behind,» he told Us.
The market is optimistic
South Korean cryptocurrency market, along with major shopping platforms, such as Bithumb and Korbit, is optimistic about the new approach, which plans to use the government to regulate the development of the industry.
Press Secretary Bithumb told Yonhap News in an interview that is developing new regulations, and stock exchange in South Korea will work in accordance with them that the market was transparent, fair and stable. Yonhap also reported that investors in the South Korean market became more optimistic and began to feel more confident in trading and investing in cryptocurrency.
In December, co-President of Korbit Kim Jin-Hwa (Kim Jin-hwa) said during a government hearing that if the government intends to tax the traders and to enforce strict rules, it must first create an equal market for cryptocurrency businesses and for investors. Kim stressed that the government should not complicate the work environment for investors, preventing the development of the industry.
Although a ban on the cryptocurrency trade is always possible, given the unpredictable nature of the South Korean government, at the present time it seems unlikely because of the mass reactions of the population, which has fallen on the government and forced him to back down.