South Korea NOT Banning Cryptocurrency Trading

The latest reports from South Korea state that the Finance Ministry refuses to support any cryptocurrency trading ban. The South Korea Ministry of Justice reaffirmed that it is continuing to draft its cryptocurrency trading closure bill, which has been in the works since December 13.

In a statement, South Korea Attorney General Park Sang-ki said:

“The South Korean Ministry of Justice is considering the closure of cryptocurrency trading to bring cryptocurrency mania and speculation under control for investor protection.”

The Price of Cryptocurrencies Drop on FUD

Earlier this year CoinDaily reported that the South Korean government formed a task force composed of representatives from the South Korean Ministry of Strategy and Finance, Financial Services Commission, Ministry of Justice, Fair Trade Commission, and Financial Supervisory Commission, has been preparing a comprehensive bill that will effectively prohibit underaged investors and foreigners from trading cryptocurrencies within the South Korean market.

This week, many mainstream media outlets reported that the South Korean government is planning to ban cryptocurrency trading. That is certainly NOT the case, as the bill would need to pass congress first before it can be come into effect.

The South Korea Ministry is merely continuing to prepare a bill that would close down certain cryptocurrency exchanges. It is not planning to ban cryptocurrency trading in the short-term. If the South Korean government intended to ban cryptocurrency trading, it would have done so on December 13, instead of releasing various regulatory frameworks that included a ban on foreigners trading cryptocurrencies.

These are the four major regulatory frameworks the South Korean government is expected to implement by January 20:

  • Prevent unaccredited investors from dealing with losses through highly volatile cryptocurrencies.
  • Prevent strictly regulated cryptocurrency exchanges from operating as speculative platforms for unaccredited investors.
  • Request banks and exchanges to ensure underaged investors and foreigners cannot open trading accounts on cryptocurrency exchanges.
  • Temporarily suspend institutional investors and retail investors from investing in cryptocurrencies.

    Official Statement from the South Korea Ministry of Strategy and Finance

One of the main member agencies of the South Korean government’s cryptocurrency regulation task force, the South Korea Ministry of Strategy and Finance, has come out and said that it does not agree with the premature statement of the Ministry of Justice about a potential cryptocurrency trading ban.

In a press conference, the South Korean Ministry of Strategy and Finance told local reporters that it had first heard of the Ministry of Justice’s cryptocurrency trading ban through media reports. The cryptocurrency task force participated by the central bank, MInistry of Finance, Ministry of Justice, and other agencies have not agreed upon the proposal.

The South Korean MInistry of Strategy and Finance emphasized that it does not agree with the proposal of the Ministry of Justice:

“We do not share the same views as the Ministry of Justice on a potential cryptocurrency exchange ban,”

The cryptocurrency trading ban proposal has not even been finalized or agreed upon by the South Korea Ministry of Strategy and Finance.

A prominent South Korean journalist has put it like this:

“crypto ban is not on the cards.Too many investors are invested, implications would be devastating. Korea has a booming blockchain industry, the gvt would not harm this new and promising sector.Investor protection is priority. Korea is not China”