Sponsored By
de | cn | ru

Market News

South Korea still on the fence about cryptocurrency trading ban, rattles markets

 The South Korean saga with the possible ban on cryptocurrency exchanges and trading in the second largest (by volume) market in the world continues and apparently the government is still on the fence on the matter.


Yet another series of contradictory messages from various South Korean ministers, however, have caused the Bitcoin to lose over 21% of its price on Thursday. Other major cryptocurrencies also lost a significant portion of their value. Since then the prices have recovered.


It all started with a statement of the justice minister Park Sang-ki who said the government was preparing a bill to ban trading of the virtual currency on domestic exchanges.


“There are great concerns regarding virtual currencies and the justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges,” he said in a statement quoted by the ministry’s press office and Reuters. Further he noted that the proposal is being made after “enough discussion” with the finance ministry and the country’s financial regulators.


According to the minister, he has “grave concerns” over the heightened adoption and “craze” among the general public for cryptocurrencies.


However, the Ministry of Strategy and Finance and other members of the South Korean task force on cryptocurrencies said they neither support, nor agree with the justice ministry’s decision to ban cryptocurrency trading.


The financial ministry’s stance was supported by the Blue House (office of the South Korean president Moon Jae-in), which in the meantime was flooded with thousands of petitions against the ban. “Tax it as much as you want but don’t shut it down. My life depends on it,” one petitioner wrote on the Blue House website, quoted by Reuters.


There have also been petitions demanding the removal of Park Sang-ki from office. Those petitions claimed that the justice minister single handedly manipulated the global cryptocurrency market by releasing a statement announcing the ban, before it was agreed upon.


According to the president’s office, the blanket ban on the local cryptocurrency industry is just one of several measures proposed and a final decision is yet to be made. It would be taken after discussion and coordination with each ministry.


The eventual ban will also have to be approved by South Korea’s parliament, with a majority of at least 297 votes.


This is the latest twist in the South Korean cryptocurrency saga and it seems that it will not come to a closure anytime soon. So far there have been numerous and often contradicting reports whether or not the authorities will ban the exchanges altogether, similarly to China, or will take other measures. So far, the only certain thing is that South Korean Financial Services Commission (FSC) forbade the initial coin offerings (ICOs) in order to safeguard investors from excessive risks.


There are also plans to ban anonymous cryptocurrency trading and allow regulators to close exchanges over violations.


South Korea is the second largest cryptocurrency market, but there is no definitive data on its volume. It is home to some of the largest (by volume) exchanges like Bithumb, Korbit and Coinone. Trading in virtual coins has become a national pastime, with people seeing it as a way to make fast money. A survey among office workers in the country, quoted by Reuters, revealed that more than 30 percent of the 941 respondents said they traded in cryptocurrencies. They had an average of 5.7 million won ($5,357.14) invested in virtual currencies.


But this is not just the office workers. According to Reuters, Lee Min-kyung, a 25-year old student in a Seoul-based graduate school said she earned about 18 million won (16,973.93), double her initial investment in bitcoin. She said the government is showing haphazard responses simply because officials have “no idea.”


TAGS: south korea  bitcoin  cryptocurrency  regulation  ban 

Related forex news

Forex
Broker Country Regulation Platform Min Deposit Review
US CFTC, NFA MT4, Web,
in-house
$50 Review Website
Cyprus, UK, Belize CySec, FCA, IFSC MT4, MT5, Web $5 Review Website
Cyprus, Australia CySec, ASIC MT4, Web,
Mobile app
$100 Review Website
UK, Cyprus, Hong Kong FCA, CySEC, SFC MT4, Web,
PrimeTrader
$100 Review Website
UK, Cyprus, Australia FCA, CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia FCA, ASIC MT4, Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
Markets,
cTrader
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus, South Africa CySec, FSCA, FSC MT4, MT5, Web $5 Review Website
UK, Singapore, Australia FCA, MAS, ASIC MT4, AT Pro,
Advantage Web
£100 Review Website
Seychelles FinaCom MT4, Web $10 Review Website

More Forex Market News

MasterCard applies restrictive rules to unlicensed forex brokers and crypto providers

Oct 15 2018 14:08:59

  Credit card provider MasterCard applies restrictive rules to unregulated forex and binary options brokers, crypto providers and ICOs, online media Finance Magnets reported on Friday. Read more

CySEC warned against unauthorized investment firm Primus Trades

Oct 12 2018 13:41:55

The Cyprus Securities and Exchange Commission (CySEC) warned the public on Thursday that Primus Trades is not authorized to provide investment services and or to perform investment activities in the country.   Primus Trades operates via website primustrades. Read more

UK’s FCA blacklists Royal CFDs and DXT Markets

Oct 11 2018 14:40:05

  The Financial Conduct Authority (FCA) has blacklisted unregulated brokers Royal CFDs and DXT Markets earlier this week. Read more

UK’s FCA flagged KontoFx, WiseBanc, and Crypto Options Trader

Oct 04 2018 12:33:10

  The Financial Conduct Authority (FCA) keeps adding more and more unregulated brokers to its warning list. Some of the recently flagged ones are forex brokers KontoFx and WiseBanc, as well as crypto binary options broker Crypto Options Trader. Read more

ESMA’s ban on binary options officially extended

Oct 02 2018 13:11:05

  The European Securities and Markets Authority (ESMA) announced on Monday that it extends the restrictions imposed on binary options for another three-month period. Read more

CFTC and SEC clamp down on crypto CFD provider 1Broker

Oct 01 2018 13:27:38

  The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have both filed charges against 1Broker, a CFD provider focused on cryptocurrencies. According to both US agencies, the company operating 1Broker, 1pool Ltd. Read more

Google allows crypto adds for regulated exchanges

Sep 27 2018 16:54:27

Google reversed its total ban on all crypto adds, saying it will now allow “regulated” crypto currency exchanges to have adds in USA and Japan on the company's websites. Read more

Japanese exchange Zaif hacked, reportedly lost over $59 million

Sep 20 2018 11:58:03

  Japanese crypto exchange Zaif was hacked and lost over $59 million worth of cryptocurrencies, local media sources reported today.   According to the report, the hackers stole 5,966 Bitcoins, some Bitcoin Cash, and MonaCoin. Cryptocurrencies worth 4. Read more

CySEC withdraws CIF licenses of AnyOption and Gobaba FX

Sep 17 2018 07:27:45

  The Cyprus Securities and Exchange Commission (CySEC) announced previous week that it withdraws the Cyprus Investment Firm (CIF) licenses of the parent of AnyOption, Ouroboros Derivatives Trading Ltd., and of Gobaba FX Cy Ltd. Read more

UK's FCA warned against Prime Crypto and 4xpremium clone firm

Sep 14 2018 10:05:58

  UK’s Financial Conduct Authority (FCA) has added several investment companies to its warning list on Thursday. Among them are the forex broker 4xpremium -  a clone firm -  and unregulated crypto CFD provider PrimeCrypto. Read more

Forex
de | cn | ru