With the price of bitcoin surging to a yearly high Monday, the South Korean government has held an emergency meeting over the risk of losses for investors, CoinDesk Korea reports.
Noh Hyeong-ouk, minister for the Office for Government Policy Coordination, announced the inter-agency meeting in a government statement earlier on Tuesday, saying participants included Ministry of Economy and Finance, the Ministry of Justice and the nation's top financial watchdog, the Financial Supervisory Commission.
"Since virtual currencies are not legal currencies and nobody guarantees their value, the price fluctuates drastically due to illegal acts, speculative demand, and changes in the domestic and foreign regulatory environment," he said. "It is necessary to make a careful decision on a series of actions."
The government plans to "closely monitor the market situation in the future and actively respond to the risk of investor damage," according to the statement.
In particular, illicit activities such as fraud and "multi-level illegal activities" based on the rise of crypto market prices "will be strictly controlled through surveillance and the financial authorities," the minister said
He further called for a bill to amend the Specific Financial Information Act in order to prevent money laundering, currently under review in the South Korean National Assembly, to be passed "as soon as possible."
Editor’s note: This article is based on a report translated from Korean.
National Assemby image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.