NEWS
IBS Journal February 2018
09
South Korea denies crypto ban as China ramps up regulation
S
outh Korea President Moon Jae-in’s executive office Blue House spokesperson Jeong Ki-joon has confirmed that there will not be a cryptocurrency trading ban in the near
future. He said a regulation taskforce created by the government will have the job of looking into the regulatory possibilities around the cryptocurrency market in order to encourage, not ban, trading.
CCN posted a translation of the statement by Ki-joon: “The South Korean government will pursue the crackdown on anonymous cryptocurrency trading accounts and will punish market manipulation, money laundering and fraudulent transactions through joint investigations participated by the local law enforcement and financial authorities.”
Ki-joon added that the cryptocurrency trading ban proposal introduced by justice minister Park Sang-ki was a just suggestion to bring speculation within the cryptocurrency market under control. The aforementioned taskforce, alongside the Ministry of Strategy and Finance, central bank, Fair Trade Commission and other agencies, would look into changes to this proposal.
He concluded: “Excessive speculation and fraudulent activities will be met with severe consequences. But the government will support and even finance blockchain technology development.”
Undoubtedly, these statements are a result of the negative popular reaction to rumours of the ban, not only by users, but also by officials in the government, including Nam Kyung-pil, former congressman and a member of the National Assembly.
“Calling Bitcoin a tulip bubble is ridiculing the South Korean people,” Kyung-pil said. “It’s a baseless condemnation of the currency. Government should focus on fostering the crypto market if it doesn’t want to be left behind.”
South Korea has been investigating and experimenting the different possible regulations on cryptocurrency trading for some time. The ban on foreigners and underaged investors from trading cryptocurrencies was implemented on 20 January this year, with exchanges accepting new investors and registrations before the end of the month.
China cracks down
South Korea’s neighbours have had a swifter response. Bloomberg reports that China’s regulators are looking at ways to regulate internet-based platforms and mobile apps that provide customers with exchange-type services.
This comes after the government banned cryptocurrency trading of all types – as well as ICOs – but there was little control over people accessing offshore and homegrown platforms that enable trading. Rumour has it that the government is also going after companies and individuals who enable cryptocurrency trading by providing services such as market making, settlement and clearing.
Scott Nelson, CEO and chairman of Sweetbridge, a global alliance that is leveraging blockchain technology to solve issues of liquidity and resource sharing within supply chains, says it is natural that governments and regulatory bodies are concerned with losing control over the monetary policies and their own currency, in case capital flight through cyptocurrency trading reaches certain levels.
In the case of China, Nelson says, it is also a matter of monitoring citizen and company activity, to a near-Orwellian degree. Nelson expects that China’s ban is eventually replaced by a system in which cryptocurrency users lose anonymity when trading – now that cryptocurrency has become mainstream, anonymity is only valued by a few, not the large consumer majority.
No imminent cryptocurrency trading ban in South Korea
Although security issues may be raised, these are not the main reason why these governments are opting towards this regulatory route. It is control over its own policies and currencies, first and foremost, although for China further interests may be in play. Nelson believes that China might get away with its all-seeing eye in the short term, but the globalising nature of blockchain and cryptocurrencies may complicate things further down the line.
www.ibsintelligence.com
ByoungJoo/iStock
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52
