South Korea To ‘Support’ And ‘Encourage’ Crypto Transactions

The head of South Korea’s financial regulator and watchdog has now affirmed the administration will bolster digital currency exchanging while at the same time urging banks to encourage transactions with exchanges, adequately killing any fears of a supposed ban.

In critical comments made today, South Korea’s Financial Supervisory Service (FSS) chief Choe Heung-sik said the government will back the digital currency industry to develop in the nation. In particular, the official said the government will bolster “normal transactions” of digital currencies, three weeks to the day after the government moved to curtail anonymous accounts trading crypto market in late January.

As revealed by Korean publication Yonhap, Choe told representatives from digital currency  trades in a current meeting that the government will support [cryptocurrency trading] if normal transactions are made”, recommending the government will empower the development of the industry under know-your-customer (KYC) transaparency.

Korean regulators mandated the utilization of a real name trading framework from January 30 wherein digital currency traders and investors are required to utilize their genuine names with their digital currency exchange accounts or wallets and bank accounts, a move to put a conclusion to the anonymous exchanging of digital currencies. While unknown account holders can keep on buying or selling digital currencies utilizing their holdings by means of virtual accounts, any new digital currency purchases or withdrawals in fiat will require compliance with the new KYC rules.

Despite the fact that various major banks started issuing new virtual bank accounts to digital currency traders as a piece of the genuine name exchanging framework, a few local banks have allegedly been hesitant to take action accordingly with the government’s intervention trading a month ago.

To cure the circumstance, Choe uncovered the government will “encourage” banks to set up ties and engage in transactions with digital currency exchanges.

Choe’s comments today additionally cements a striking turnaround from a prohibition on digital currency exchanging first proposed by Korea’s Justice Ministry. Rather, South Korea is apparently considering its own endorsement framework in giving licenses to digital currency exchanges who play by regulatory guidelines and rules.


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