The South Korean Minister of Strategy and Finance has met with the governor of the People’s Bank of China to discuss and share economic policies including cryptocurrency countermeasures. While China has imposed strict regulations on cryptocurrency trading, including closing down exchanges, South Korea has adopted a less strict approach.
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Korea Discussing Crypto Policies With China
Kim Dong-yeon and Zhou Xiaochuan meeting.
The South Korean Minister of Strategy and Finance, Kim Dong-yeon, on Friday met with the governor of the People’s Bank of China (PBOC), Zhou Xiaochuan. While discussing the economic issues of both countries, the regulators also discussed their cryptocurrency policies, local media report.
China has imposed a ban on cryptocurrency trading including closing down domestic crypto exchanges. South Korea, however, has been successively releasing countermeasures for cryptocurrencies since December. The Korean government has considered various measures ranging from a complete ban suggested by the Ministry of Justice to less strict measures. At the end of last month, the regulators mandated the implementation of the new real-name account system for all cryptocurrency exchanges.
Kim was quoted by Newsis describing:
The two sides shared their opinions on the situation and policy responses of the two countries regarding the recent virtual currency issues.
During the meeting, the PBOC reaffirmed its close cooperation with the South Korean government, the news outlet added. The Korean ministry also said that it will continue to cooperate with the PBOC “through high-level consultation channels,” Asia Today reported.
Korea Avoids Closing Down Exchanges
While the South Korean government has continually emphasized the importance of strict measures to curb the overheated cryptocurrency market, closing down crypto exchanges has been avoided so far.
At the National Assembly Planning and Finance Committee meeting on Wednesday, Kim pointed out that there may be a problem of underground transactions and foreign currency leakage if exchanges are closed, YTN reported. Money Today then quoted him saying:
The government has no intention of eliminating or suppressing virtual currencies…I am currently discussing urgent matters with the [cryptocurrency] task force in the government because the virtual transaction facilities [exchanges] regulated by the e-commerce law are the biggest problem.
Cryptocurrency exchanges are not financial entities in Korea; they fall under the e-commerce law. In contrast, Kim noted that, in Japan, they are managed by registration with the country’s financial authority.
Kim’s meeting with the PBOC governor followed the South Korean government’s announcement in early January that it will cooperate with China and Japan to address cryptocurrency speculation. In addition, the vice chairman of the country’s Financial Supervisory Commission (FSC), Kim Yong-bum, also urged 23 other countries and 12 organizations, including the International Monetary Fund and the European Union, to collaborate on curbing cryptocurrency trading.
Do you think the PBOC has inspired any changes in South Korea’s crypto policies? Let us know in the comments section below.
Images courtesy of Shutterstock and Newsis.
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