South Korean Financial Authorities Plan to Regulate Bitcoin Exchanges Soon

Unverified rumors on the South Korean government’s potential crackdown on cryptocurrency trading circulated around online Bitcoin communities over the past few days.

Currently, the South Korean government remains highly optimistic in regards to the growth of the local Bitcoin industry and has recently announced its plans to introduce a nationwide regulatory framework for Bitcoin exchanges and brokerages.

South Korea wants to regulate Bitcoin market, not ban

As Cointelegraph reported, South Korea’s Deputy Prime Minister and the Minister of Strategy and Finance Kim Dong-yeon announced that the government is actively investigating into methods of providing local cryptocurrency and Bitcoin investors with consumer protection, implementing stricter Know your Customer (KYC) and Anti-Money Laundering (AML) policies, and protecting customer assets.

The South Korean government does not intend to crack down on any aspect or area of the Bitcoin market because the enforcement of impractical policies can lead to the migration of investors and their funds into unregulated over-the-counter (OTC) markets, which are significantly more challenging for the government to oversee.

Hence, there is no truth to any of the rumors circulating around online Bitcoin communities and forums that the South Korean government will crackdown on Bitcoin trading. Just last week, South Korea’s ministry of finance and strategy revealed that it has already begun the process of drafting various regulations for cryptocurrency exchanges…

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