There was an uproar in cryptocurrency market post the announcement that the South Korean government wishes to ban cryptocurrency trading in the country. The top 20 cryptos registered price falls as the mainstream media started reporting that the ban is certain. The news also led to a surge in sell-off of cryptocurrency in the country.

South Korean Finance Minister, Kim Dong-yeon finally had to clarify the government’s stance. In a press conference conducted on January 31st, he said,

There is no intention to ban or suppress cryptocurrency (market). The Customs service has been closely looking at illegal foreign exchange trading using cryptocurrency as part of the government’s task force.”

Earlier Kim Sang Jo, Fair Trade Commission Chairman had also made a statement saying,

“[Banning cryptocurrency exchanges] is not realistically possible. Based on the electronic commerce law, the government doesn’t even have the authority to close down cryptocurrency trading platforms. From the viewpoint of an economist, it is not a fair and transparent decision to outright ban economic activity. Whether it is excessive speculation or not, the gain or the loss is the responsibility of the investor.”

The Government Imposes New Laws

The government has recently detected around 637.5 billion won worth of currency crimes. Cryptos share a massive percentage of the bulk of that figure. Elaborating more on the issue, the government noted an illegal exchange agency transferred 1.7 billion won out of the country in the form of “electronic wallet” coins.

Considering the money and crypto laundering, the government is going to only permit licensed banks and brokers to offer foreign exchange services. In case a company or resident wishes to move more than $3,000, they need to submit documents to authorities stating the reason for transfer. Also, only real-name bank accounts can be used for cryptocurrency trading.

Crypto-Market May Turn Bullish Again

There are speculations that the crypto-market will recover with the news. New users will be allowed to sign for crypto-trading which will increase the daily trade volume. An add-on on the positive news comes from Shinhan Bank. The country’s second-largest bank has now started to support cryptocurrency exchanges with banking services and virtual bank accounts.