South Korea bitcoin - South Korea’s FCA: Banning Cryptocurrency Trading Is Illegal

South Korea’s FCA: Banning Cryptocurrency Trading Is Illegal

FUD news have been spreading in the last weeks and months about South Korea and a possible cryptocurrency trading ban. But the reality is that none of these news that tried to disseminate fear was able to do it. Facts prove that the intention is to harm the cryptocurrency world.

The agency of consumer protection in South Korea has explained that the ban of virtual currencies is illegal. The state agency has once more shown the lack of unanimity in the local authorities to implement a ban on the cryptocurrency market.

South Korea’s FCA Defends Cryptocurrency Trading

The agency gives a recommendation to the President Moon Jae in order to stop the confusion generated on the matter.

The FCA said:

“The government has yet to establish the legal grounds over related laws for consumer protection, in particular in the cryptocurrency market. Who is to blame for lots of negative news about the craze in the cryptocurrency market? It doesn’t make any sense that markets and investors should take responsibility.”

Besides the recommendation from this governmental agency, there was a petition that gathered more than 200k signatures in order to stop the cryptocurrency trading ban. It is important to remark that the South Korean society and cryptocurrency exchanges are in favour of regulations.

Bithumb, one of the most important exchanges in the Asian country, has expressed that regulations are welcomed in order to give legitimacy to the market. Strong Know Your Customer (KYC) and Anti Money Laundering policies (AML) are important in order to have a legal market and legitimized by local institutions, investors and enterprises.

The government has yet to give an official answer to the petition with 200k signatures. South Korea is the most important cryptocurrency market after the Japanese and the American one. The South Korean won moves more money in the cryptocurrency market than the Euro itself (that it is used by several important countries). Japan has increased 0.3% its GDP due to the cryptocurrency market. Would South Korea benefit from it as well?

Moreover, South Korea declared that certain banks will allow cryptocurrency trading again, according to an article. There will be some certain regulation, but clearly not a ban on cryptocurrencies.