The finance minister of South Korea Kim Dong-Yeon has tried to quell the laws of the cryptocurrency investors by stating that the government does not plan to ban the cryptocurrency. According to him, neither the government is trying to suppress any of the cryptocurrencies.
Even though South Korea has been taking firm steps in order to make cryptocurrency exchanges more transparent but the finance minister of the country was quite clear that the government would stay away from banning the cryptocurrencies.
This was in stark contrast with the statement which the minister made around a month back which stated that there was a ban on cryptocurrency exchanges in the making. After that, the mainstream media of the country actually hyped up the news via significant amount. This led to a sell-off in the cryptocurrency markets.
Illegal trading in cryptocurrencies needs to be stopped
In the aftermath, there was a petition which asked the government to remove the minister and it gained over 200000 signatures. Once this threshold of signatures is crossed, it is necessary for the government to officially respond to the petition.
According to the Finance Minister, the regulatory framework is necessary for cryptocurrencies. Also, illegal trading in cryptocurrencies needs to be stopped. He also highlighted a trade worth $ 600 million which was done illegally is currently under investigation.
Identity is compulsory for the cryptocurrency exchange
South Korea is trying to make it compulsory for the cryptocurrency exchange users to submit their identity so that anonymous trading is not possible. In order to strengthen its position, it is cracking down on anonymous bank accounts as well. This, however, is having a positive impact on the banks as the workload is tremendously increased. Owing to this very reason, banks are not able to easily comply with the new regulatory framework.
Anonymous cryptocurrency trading would be a thing of the past
The cryptocurrency exchanges are taking heed to the new rules and regulations which are being launched by the government. It seems like anonymous cryptocurrency trading would be a thing of the past in South Korea. However, this has had a drastic impact on the cryptocurrency market. The valuation of cryptocurrencies is falling consistently owing to which more and more investors are actually staying away from cryptocurrencies and liquidating their holdings in the meantime. It remains to be seen when this bloodbath would finally end. With the increasing regulations evolving in cryptocurrencies all over the world, more and more investors are worried about investing in them. The current scenario for cryptocurrencies actually looks quite bleak as they continue to fall day by day.