South Korea Assures No Ban For Cryptos As $600 mln Unlawful Trades Revealed

South Korea Assures No Ban For Cryptos As $600 mln Unlawful Trades Revealed

On Wednesday, January 31, cryptocurrency market keeps sinking in red even though the finance minister of South Korea reassured the authorities do not have intentions to forbid cyber money trading in the country. Despite anything, this is good news for crypto enthusiasts and traders who for the past months have been living in fear that South Korean government may shut down virtual money market following the example of China. Interestingly, the same day it was unveiled that $600 million of unauthorized crypto trades took place in the country.

No Ban, No Fears

Just the very same day after South Korea launched the real-name trading system for virtual money, which prohibits banks from opening anonymous accounts for crypto trading, the head of South Korean Finance Ministry Kim Dong-yeon calmed down the turmoil which has been dragging on for weeks.

In the mid-January country’s justice minister Park Sang-ki announced that the department was working on the bill to ban crypto trading. Such news stirred up speculations and concerns in the virtual money community, even though later the presidential office assured that the decision on the forbiddance was not final. After such controversial remarks from government branches, finance minister Kim decided to set the record straight.

“There is no intention to ban or suppress cryptocurrency [market],” Reuters cited Kim.

Also, he added that the country’s primary goal is not to prohibit cryptos but to set regulation over cyber money trading platforms.

Illegal Trading Detected

Since December 2017 South Korean government have been curbing on the cyber money market, so a few hours before Kim’s announcement, the state’s customs notified that it unveiled illicit digital money foreign exchange trading for about $600 million.

To be precise, that was 637.5 billion won, equivalent to $596.02 million, highlighted customs statement. At the same time, there were given no particularities about what the punishment, which can be imposed on violators.

Apparently, there were several cases of laws breaches. For example, according to customs, investors in Japan would send 53.7 billion of Korean won to their associates in the country for illicit cyber money trade.

In another particular matter, an unlawful FX agency, in general, gathered from Koreans 1.7 billion won, equivalent to $1.59 million, as so-called ‘electric wallet’ funds. After that, the agency remitted the money to a partner overseas, who cashed crypto funds out and spread among its users in that state.

It is crucial to emphasize that according to current law, only certified brokers, as well as banks, are permitted to offer trans-border exchange services. As Reuters stated, if a South Korean wants to transfer over $3,000 abroad, he or she is obliged to demonstrate tax bodies docs, which justify such necessity.

Market Responding

It is unknown how further the South Korean government will move in its efforts to control the crypto market. But what is clear now, is that with over 1,000 cryptocurrencies on a store, currently, the total crypto market capitalization makes up around $504 billion. That’s 1.6 times smaller than sums that circulated in the market around a month ago.