An embargo on the virtual currency has begun in South Korea after a 280,000-signature petition was forwarded to the Blue House, which houses several government offices. The government has revealed that the signatures were demanding action against unfair and illicit trading moves of Cryptocurrency.
A Trading Hub for Cryptocurrency
After a long market frenzy that got the attention of students and housewives alike, South Korea has become one of the major trading hubs for the Cryptocurrency. According to a statement released by the minister in charge of the government policy coordination, Hong Nam-Ki, the basic rule of the government is to stop any illicit acts or ambivalences that might be involved in the Cryptocurrency trade. This will be done as the blockchain technology is eagerly nurtured to operate in its best modes.
It can be remembered that South Korea was among the first countries that issued regulations on cyber-currency. The petition, however, came after the Minister for Justice stated that the government had plans of shutting down all exchanges that might have included Cryptocurrency. The main demand of the recent petition was to stop the government from imposing unrealistic regulations on the trading of the Cryptocurrency.
The Industry Should be Reviewed
The government policy coordination minister went ahead to state that they have plans to assess the virtual currency industry based on the international standards. He, however, revealed that the state is still undecided on whether to execute the ban on the trading of the virtual currency or to create some agencies that will be charged with the responsibility of taking care of the virtual currency. The government of South Korea has a full month to respond officially to this petition that has so far obtained over 250,000 signatures.
South Korea had prohibited the use of anonymous bank accounts in crypto coin trade, which took effect from the 30th of January 2018. It further stated that it has no intention of closing down the domestic exchanges as had been earlier reported.
New Means of Taxing Cryptocurrency
Led by the country’s Ministry of Finance, South Korea is planning to come up with ways of taxing the Cryptocurrency. Before the second half of 2018, the ministry will announce the plans that it will undertake to improve the entire Blockchain industry.
A number of cryptocurrencies like Bitcoin have not had it smooth for the past few months. They are currently facing a huge clampdown from various governments all across the globe, with the leading ones being the Asian states of China and India. According to these countries, they have undertaken these measures to tighten up the regulations and ensure that the interests of the traders are safeguarded. Since the beginning of 2018, virtual currencies have experienced a great price fall. The extortionate price of Bitcoin that was witnessed in 2017, for instance, generated anxieties among a number of central bankers.
Christine Lagarde who is the head of International Monetary Fund is the latest economic official to oppose the inevitable regulations of Cryptocurrency. Some of the countries that have introduced regulations on the virtual currencies are China, South Korea, and India.