South Korea Not Ruling Out Shutdown of Bitcoin Exchanges in the Future

South Korea Not Ruling Out Shutdown of Bitcoin Exchanges in the Future

South Korea isn’t banning bitcoin, but a top authorities official says that regulators will keep in mind shutting down digital currency exchanges within the future if proposed policies fail to cool off what they consider to be irrationally overheated markets in South Korea.

In step with multiple local media reports, Hong Nam-ki, minister of South Korea’s office for authorities’ policy Coordination, stated that regulators would keep in mind shutting down digital currency exchanges if new measures supposed to reduce digital currency speculation fail to have the desired impact.

South Korea

Hong Nam-ki said:

“We’re making plans to remember each possible measure in the future, such as the shutdown of exchanges.”

A record from fellow Seoul publication The Korea Times noted that Hong stated that Korea’s Ministry of Justice had already proposed shutting down digital currency exchanges, even though the authorities has to follow-up on this concept.

However, South Korea introduced a bevy of new policies governing digital currency exchanges placed within the South Korea. Beneath the new measures, customers will not be allowed to exchange anonymously, and each minors and foreigners may be barred from developing buying and selling accounts. Furthermore, exchanges will be prohibited from permitting investors to open new accounts until name verification regulations had been applied.

The authorities has additionally started conducting onsite inspections of digital currency exchanges, a practice which it started in earnest following the hack of local exchange Youbit and the organization’s next bankruptcy filing. In line with a statement posted following the inspections, regulators deemed the safety and control operations of most exchanges to be insufficient.

Bitcoin

These measures are supposed to cool off Korea’s heated digital currency markets, which frequently price coins at huge rates, each because of local demand and the issue of worldwide arbitrage. More than three out of ten Korean office employees have invested in bitcoin, or even center school students have taken to day buying and selling. South Korea’s digital currency mania has become to mention that even prime Minister Lee Nak-yon commented on the matter, calling it a pathological phenomenon that would enhance criminal interest.

However, regulators have suggested that remaining exchanges is an opportunity, many investors trust that a blanket shutdown is not likely, particularly thinking about the huge size of the local markets. A more likely situation is that the authorities will close individual exchanges for non-compliance with regulatory necessities, a move that might assist prevent future hacks and strengthen the markets over the long-term.

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