South Korea Prepares a Law on the Prohibition of Trade in Cryptocurrencies

South Korea Prepares a Law on the Prohibition of Trade in Cryptocurrencies

The Ministry of Justice of South Korea is preparing a bill prohibiting trade in cryptocurrencies in virtual exchanges of the country. This is reported with reference to the statement of the head of the department Park Sang-ki.

We have big concerns about virtual currencies, and the Ministry of Justice is preparing a bill that will prohibit the trade in cryptocurrency on exchanges.

He did not disclose the main provisions of the document but said that representatives of the Ministry of Finance and national financial regulators will participate in the work on it.

Pak San Ki also said that the government of the country held several interdepartmental meetings devoted to this problem and his agency proposed the most rigorous method, implying a total ban on operations with the cryptocurrency in the Republic of Korea.

Recall that the government of South Korea is working on a system of mandatory identification of the identity of crypto traders, it became known in early January. Its implementation, scheduled for January 20, automatically implies the end of the anonymous trading of cryptocurrencies. The introduction of this system is positioned as a special measure designed to eliminate speculation in the field of virtual currencies.

South Korea is an important market for the cryptocurrency community. According to the analytical company Coinhills, the share of this country at some point accounted for about 25% of global activity in bitcoins trade.

Earlier, Chairman of the Financial Services Commission (FSC) Choi Jong-Ky said that the agency intends to determine measures to restrict transactions with crypto-loans "to some extent." However, he then admitted that the measures could include a complete ban. According to the official, the restrictions will have to minimize the side effects of bitcoin operations and reduce speculative investments.

The government of South Korea on December 28 promulgated a plan to limit speculative activity in the market of cryptocurrencies. The government also announced that they are considering closing the crypto-exchange.

Last month, South Korean authorities also announced their intention to impose a tax on capital gains arising from the trade in crypto-currencies and to limit the operations of financial companies with cryptocurrencies.

Information Source: CNBC