South Korean financial regulator-South Korea will support cryptocurrency transactions: South Korea is one of the countries which are at the forefront when it comes to regulating cryptocurrencies. Till a few weeks back, there was fear that cryptocurrency trading will be banned in South Korea. However, those fears have been eliminated entirely.
According to the financial regulator head of South Korea, cryptocurrency transactions will be supported by the government. They will not be out rightly banned.
The financial supervisory service, intends to normalize the cryptocurrency transactions. This statement was issued by the Chief of the financial supervisory service that is Choe Heung-sik. The government is only trying to curtail the anonymous transactions of cryptocurrencies.
According to the head of the regulator, as long as all the rules and regulations are followed in cryptocurrency transactions, the government will not have any problems. With proper transparency, transactions can be conducted in the cryptocurrency space.
The South Korean regulators have been pioneers when it comes to inducing transparency in the cryptocurrency trade. From January 30 of this year they have been using the real name trading system for cryptocurrency exchanges. This ensures that without revealing the identity of the users, no cryptocurrency exchanges are allowing them to trade. This actually helps the cryptocurrency exchanges as well as legitimate traders as money laundering is not possible with the help of cryptocurrencies.
Also, virtual bank accounts have been issued to large cryptocurrency traders. This ensures that the verification of these traders can be done quite easily. Even though, still banks are reluctant to issue the virtual bank accounts to each and every trader but most of the large trading companies already have such a bank account. This ensures that transparency can be easily induced in cryptocurrency trading.
According to the head of the regulator, the government will work closely with the cryptocurrency exchanges. This will be done to ensure that a proper atmosphere and ecosystem can be created for the trading of cryptocurrencies.
These remarks will surely soothe the South Korean investor’s nerves. Earlier, there was increased speculation that the government will entirely ban cryptocurrencies. Ever since then, the general public and citizens have voiced their anger through various petitions. Thus, it has become clear to the government that banning the cryptocurrencies is not the solution which they should opt for. The mellowing down of the tone of the government is a clear indication of this fact. Nevertheless, this is positive news for not only South Korean cryptocurrency traders but the cryptocurrency markets as a whole.