South Korea to Support 'Normal' Crypto Trading, Says Finance Watchdog

South Korea's Financial Supervisory Service has reportedly said that the government will support "normal" cryptocurrency trading transactions.

AccessTimeIconFeb 20, 2018 at 12:10 p.m. UTC
Updated Sep 14, 2021 at 1:54 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

South Korea appears to be softening its stance on cryptocurrency trading.

According to Yonhap News, Choe Heung-sik, governor of the Financial Supervisory Service, has said the government "will support [cryptocurrency trading] if normal transactions are made."

At a meeting with representatives from cryptocurrency exchanges, Choe also said the government will "encourage" banks to work with cryptocurrency exchanges, the report states.

While brief, the statements will likely be seen positively by South Korea's crypto community, as well as world markets, since the option to outright ban cryptocurrency exchanges had been mulled by regulators as one way to calm the country's heated cryptocurrency market and counter money-laundering.

After the news broke that South Korea might "ban or suppress" cryptocurrency trading, prices of cryptocurrencies including bitcoin dropped sharply in mid January. Soon after, the country's finance minister moved to calm the markets stressing that regulating exchanges is the government's "immediate task," though he did not rule out a future ban.

The statement also comes soon after the country has moved to restrict the market in other ways.

A ban on anonymous trading took effect on Jan. 30, after which cryptocurrency transactions must be conducted via accounts attached to users' identities. People flouting the ruling now face penalties if caught.

South Korea has since revealed that it is considering adopting a system similar to New York's "BitLicense" for the regulation of cryptocurrency exchanges.

According to BusinessKorea, a government official involved with a virtual currency task force said Feb. 13: "We are positively considering the adoption of an exchange approval system as the additional regulation on cryptocurrencies. We are most likely benchmark the model of the State of New York that gives a selective permission [for exchange operations]."

Flag image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.