Even though the government of South Korea has repeatedly said that it had no plans to impose bans on the tradings of Cryptocurrency and Bitcoin, most of the stakeholders in the market couldn’t believe it. They have all been discourteous, wondering how such a ban will be made possible.
But South Korea’s Minister of Finance has come out to clarify the matter. In a statement released to the press on 31st January 2018, Mr. Kim Dong-yeon who heads that docket has announced that his government has no intention to prohibit the crypto operations any time in the future.
Welcome News For Asian Investors
The operations of Cryptocurrencies in the entire Asian region haven’t been a smooth one. For a long time, the investors in South Korea have been perturbed that the government would block the operations of the virtual coins just as it happened in China. The announcement by South Korea’s Finance minister was therefore great news to the investors in this vast market.
The news came at a time when traders from the country and even globally, were agitated by incongruous remarks coming from the government officials in South Korea.
It can be remembered that South Korea is one of the Asian countries where virtual currencies have had a successful adoption and banning the exchange of these local digital coins would not have been taken lightly. According to Kim Dong-yeon, the South Korean government instead has plans in place to ensure that the exchanges are regulated.
Fixing The Market
The government of South Korea has of late been seen working hard to ensure that the exchange market is in its right state. According to the international policymakers, the South Korean financial market has been largely viewed as risky and opaque. Through the country’s customs and the management of its capital city, Seoul, it has done all it can to fix the loose screws on this industry.
Earlier on 31st January 2018, the customs broke the news that it has dug up illicit foreign exchange trading of Cryptocurrency that was valued at almost $600 million. The country has been trying all it can to create a regulatory oversight for the operations of Cryptocurrencies. This was amid the efforts by the government to try and warn the locals against jumping on this market without considering certain facts. Seoul, in a statement that was released sometime in the past, had said that it had plans of shutting down the cryptos. The government, through its Finance Minister, would later dismiss this.
Previous Crypto-related Crimes in South Korea
The country’s department of customs said that foreign exchange crimes valued at $596.02 million were detected. A huge bulk of the cryptocurrency related crimes was made up of the trading of illegal foreign currency. It is important to note that only licensed banks in South Korea are allowed to provide foreign exchange services. The residents and local firms who want to transfer more than $3,000 to a foreign country at a go must comply with the tax department and give explanations for the transfer.
Other crimes that were released by the Customs was the case of Japanese investors who sent about 53.7 billion yen to their South Korean partners for illicit currency operation.