The future of cryptocurrency in South Korea has yet to be determined. Some government officials want to ban cryptocurrency trading altogether. Enforcing such a measure will be very problematic, for obvious reasons. South Korean FTC Chairman Kin Sang-jo claims closing down local exchanges is impossible and unrealistic. This doesn’t mean the government will not try to achieve this goal in the long run. For now, it seems there are some mixed opinions regarding this matter.
Preventing cryptocurrency trading across South Korean exchanges is not easy. Nor is it something that will serve any real purpose either. All it will do is cut off the country from the cryptocurrency world as a whole. China has taken similar measures which offered them no benefit in return. FTC Chairman Kim Sang-Jo is convinced this course of action is unrealistic”. Whether or not that means the proposal has been put on ice, remains unknown for now.
Kim Sang-jo Envisions a Bright Cryptocurrency Future
It is evident the South Korean governments want to protect consumers from hype and speculation. Right now, local exchange prices for all major cryptocurrencies are heavily inflated. It is not an ideal situation, yet resolving the matter will take some time. Trying to prevent consumers from trading cryptocurrencies domestically would not serve any real purpose. In fact, it would be more harmful than anything else. There is no applicable legislation to ban cryptocurrency exchanges, according to Sang-Jo. It is unclear if other officials think along these same lines, though.
For now, the South Korean FTC investigates whether or not such exchanges violated any laws. Depending on the results, there may be some repercussions. Even so, it seems highly unlikely any violations warrant the banning of cryptocurrency trading altogether. Nor will any platforms be closed as a result of such issues. Then again, illegal activity will need to be addressed in one way or another. Regulating cryptocurrencies is a very difficult subject, especially in South Korea. There is no “right” approach in this regard.
For now, we will have to wait and see how things unfold. It is good to see Kim Sang-jo weigh in on these matters in a public manner. It is impossible to tell what most government officials are thinking right now. While the thoughts by Kim Sang-Jo are somewhat positive, nothing has been set in stone yet. No one knows if South Korea will ban trading in the near future. Doing so is clearly counterproductive. At the same time, governments are genuinely afraid of Bitcoin and altcoins.
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