Tuesday, May 30, 2023

Korea to impose additional regulatory curbs on cryptocurrency trading, prices nosedive

정부, 가상화폐 거래실명제••• 거래소 폐쇄 특별법도 검토

The Korean government made a surprise announcement earlier this morning about its plans to curb speculation on cryptocurrencies like Bitcoin.
Korea is the world’s third biggest market for cryptos.
Their extreme volatility… and very uncertain future has the government concerned.
The announcement of the new measures caused crypto prices to plunge.
Lee Ji-won has more.
After a meeting of related ministries Thursday,… the Korean government announced additional measures to regulate speculation in cryptocurrency.

“Virtual currencies are not legal tender. And despite numerous warnings over the sudden ups and downs in price, fraud and hacking,… the prices of most virtual currencies are much higher on Korean exchanges than in other countries,… and speculation is getting out of control. That’s why the government has decided that we can no longer sit and watch.”

One of the major changes in the measures is a requirement for investors to use only verified bank accounts and they’ll have to use the same bank that the exchange uses.
It plans to require real-name transactions in cryptocurrency trading starting next month,… banning the use of anonymous virtual accounts.
This is to boost transparency… and ban speculative demand from teenagers and foreigners.
The issuance of virtual accounts is banned effective immediately and work will be done to switch over the existing users of virtual accounts.

Another change will be a crackdown and tougher punishments for cryptocurrency-related crimes.
The government will set out a plan for its crackdown on cryptocurrency crimes for next year,… and crimes such as price manipulation will be treated with the maximum penalty allowable by the courts.
Banks will also have a greater obligation to prevent money laundering on cryptocurrency exchanges.

And to cool down speculation,… the Korea Communications Commission will regulate indiscriminate online advertisements for cryptocurrency.

The Ministry of Justice for the first time officially proposed enacting special laws to shutdown the crypto exchanges,… and the government said it will, for now, leave all options open,… while keeping a close eye on the speculation and response measures to crime.

Meanwhile, Seoul’s crypto exchanges saw prices fall off a cliff,… as much as 16-percent,… after the announcement,… causing worry over the government’s intervention in the market.
Lee Ji-won, Arirang News.

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