Financial Regulator: South Korean Government Will Support Cryptocurrency Transactions

February 20, 2018 1:41 pm Published by

South Korea’s top financial regulator and watchdog confirmed Tuesday the government will support cryptocurrency trading in addition to encouraging banks to facilitate transactions with exchanges – effectively killing any fears of a rumored ban, Cryptocoinsnews reported.

Financial Supervisory Service (FSS) chief Choe Heung-sik said the South Korean government would back the cryptocurrency industry developing in the country, the report said.

More to the point, the report said, he said the government will support “normal transactions” of cryptocurrencies, three weeks after the government moved to curtail anonymous accounts trading in crypto markets in late January, Cryptocoinsnews reported.

Quoting Yonhap, the report said Choe told representatives from cryptocurrency exchanges the South Korean government “will support [cryptocurrency trading] if normal transactions are made”, suggesting the government will encourage the growth of the industry under know-your-customer (KYC) transparency, the report said.

Beginning Jan. 30, Korean regulators mandated the use of a real-name trading system where cryptocurrency traders and investors are required to use their real names with their cryptocurrency exchange accounts or wallets and bank accounts, a move designed to put an end to the anonymous trading of cryptocurrencies, the report said. 

While anonymous account holders can continue to buy or sell cryptocurrencies using their holdings via virtual accounts, Cryptocoinsnews reported, any new cryptocurrency purchases or withdrawals will require compliance with the new KYC rules.

Although a number of major banks began issuing new virtual bank accounts to cryptocurrency traders as a part of the real-name trading system, the report said, several local banks have reportedly been reluctant to comply with the government’s intervention trading last month.

To remedy the situation, Choe revealed the government will “encourage” banks to establish ties and engage in transactions with cryptocurrency exchanges, the report said., Jack Durschlag

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