Categories: CryptoNews

No, South Korea Is Not Banning Cryptocurrency Trading

It is not the first time mainstream media outlets haven’t fully grasped a situation affecting the cryptocurrency world. Depending on which source you believe, the South Korean government is either doing nothing or wants to ban all cryptocurrency trading. The truth of the matter is somewhere in the middle, as there is no intention to ban such trading whatsoever. Instead, a contingency plan has been drafted to punish companies not abiding by the new rules.

Understanding the Cryptocurrency Situation in South Korea

Over the past few weeks, a lot of things have happened involving South Korean regulators. At first, they were surprised to see exchanges and other trading platforms enact voluntary regulation. That sort of thing is exceedingly uncommon, especially in the world of cryptocurrency. However, the government still decided to impose some extra rules, which was only to be expected. Surprisingly, its approach seemed to be rather positive when looking at the bigger picture.

More specifically, the South Korean government is cracking down on anonymous trading across exchanges and brokers. It is evident they want customers to identify themselves and verify their identity before buying or selling Bitcoin and altcoins. After all, the same applies to virtually every other exchange in all corners of the world. It makes sense for the South Korean government to impose such a requirement as well. In the long run, this should help deter criminals from using Bitcoin or other cryptocurrencies on the market.

Fast forward to today, and sites like Reuters are claiming South Korea is banning cryptocurrency trading altogether. While it is a spectacular headline, it is not entirely factual. More specifically, it is true the government has cracked down on a few exchanges to ensure they are fully compliant with all of the new rules. On-site inspections are not uncommon in the world of cryptocurrency exchanges. Regulators are mainly interested in ensuring no company facilitates money laundering or tax evasion.

Related Post

Moreover, Reuters claims Korean Justice Minister Park Sang-ki is preparing a bill to ban the trading of virtual currencies on domestic exchanges. Again, there is some truth to that statement. There is indeed a bill on the table which would terminate any cryptocurrency exchange or broker failing to comply with the new regulations. Any company violating the rules will be shut down immediately, and severe punishment will be headed their way. However, this doesn’t mean the bill will ban all cryptocurrency trading by default, other than the anonymous trading which we previously touched on.

In a way, we should commend the South Korean government for imposing fair cryptocurrency trading regulations. In China, we saw a similar approach at first, which ultimately led to the PBoC indefinitely banning all CNY-based trades. Whether or not that situation will ever be reversed has yet to be determined at this point. In South Korea, things will not get that far, at least for now. The bill to ban specific cryptocurrency exchanges hasn’t even been approved by the National Assembly. Advancing this bill may take months, if not years, assuming it will ever happen.

As one would expect, the misinformation distributed by the media triggered a massive sell-off across all cryptocurrency markets overnight. Virtually all of those losses were absorbed and recovered in a matter of two hours. It is not the first time incorrect media information has triggered unwarranted panic. For now, South Korea will not impose any ban on cryptocurrency trading whatsoever, but the government will keep a very close eye on the situation.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

Share
Published by
JP Buntinx

Recent Posts

Qubetics Presale Skyrockets to $7.5M as XRP and Arbitrum Lead Best Altcoins for Exponential Returns

The crypto market is always evolving, with big names like Bitcoin and Ethereum leading the…

24 mins ago

Over 300K Users Actively Mine Crypto On BlockDAG’s X1 Miner App While BNB Bulls Eye $3K; What’s XRP’s Price Target?

The crypto market is ablaze with excitement as altcoins like XRP and BNB make major…

40 mins ago

Best Crypto Presale To Buy Now: Rollblock Delivers For Holders With New License, Record Sign Ups and 7000+ Games

Rollblock is quickly becoming the best crypto presale to buy, delivering unmatched value for its…

4 hours ago

Polkadot And Uniswap Gearing For Post-Christmas Jump As Rollblock Raises $7.4 Million in Presale

While Rollblock's continues its crypto presale, with its value increasing regularly, Polkadot (DOT) and Uniswap…

5 hours ago

IntelMarkets (INTL) Receives Massive Demand From Chainlink And SUI Investors Looking To Position For The Best Bull Run Gains

As the cryptocurrency market gears up for a bull run, IntelMarkets (INTL) is attracting significant…

5 hours ago

FOMO Selling Trigger $1 Billion Liquidations as LINK & SOL Bleed Heavily; What to Do Next?

In the past, Chainlink (LINK) and Solana (SOL) have been among the most discussed altcoins…

11 hours ago