[2018-01-18] Impossible’ to Shut Down Cryptocur. Exchanges, Korea’s FTC chairman

[ivanpoldark]

The chairman of Korea’s Fair Trade Commission – the economic competition regulator – has blasted efforts to shutter cryptocurrency exchanges before calling on the government to regulate the industry instead.

In a radio interview yesterday, FTC chairman Kim Sang-Joo plainly opined it is “not realistically possible” to shut down cryptocurrency exchanges, adding that the law does not permit authorities like the justice ministry to close cryptocurrency exchanges.

In quotes reported by JoongAng, Korea’s largest media network, Kim said of the proposed ban in translated statements by CCN:

“[Shutting down cryptocurrency exchanges] is not realistically possible. Based on electronic commerce law, the government does not have the authority to close down cryptocurrency trading platforms.”

The official was offering his take on the recent controversial statements by the country’s justice minister Park Sang-ki. In a press briefing a week ago, the latter revealed the ministry was “preparing legislation that basically bans any transactions based on a virtual currency through trading.” In essence, a complete shutdown of domestic cryptocurrency exchanges “would be one of the goals we are aiming for,” justice minister Park said. The backlash from the Korean public was immediate and fierce, compelling the official office of the Korean president to release a statement cooling fears of a ban on trading, on the same day of the justice minister’s statement.

The statement is particularly notable, coming from the chairman of the country’s economic competition regular and a member of South Korea’s cryptocurrency task force – an inter-governmental collective tasked to propose a regulatory framework for the cryptocurrency industry. The FTC joins the Ministry of Strategy and Finance, a fellow task-force member, in refusing to support the proposed ban by the Ministry of Justice.

Asked if the increased investments into cryptocurrencies is due to excessive speculation, chairman Kim expressed a hands-off approach, pitting cryptocurrencies alongside any other traditional investment. He stated:

“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.”

Furthermore, Kim called or a more nuanced regulatory approach with limits for investors. A ban, if needed, would extend only to crypto exchanges and trading platforms violating rules.

He said:

“The government is investigating into cryptocurrency exchanges to examine whether trading platforms have violated their own terms and conditions by establishing a limit on withdrawals of individual investors.”

https://www.ccn.com/impossible-shut-cryptocurrency-exchanges-govt-lacks-authority-koreas-fair-trade-chief/

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[jseverson]

“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.”

Thank you. This is what everyone else had been thinking the whole time. It's reassuring to see that South Korea has strong institutions, and it seems like regulations are going to be handled in a fair manner. I'm sure the massive backlash helped, but that's just the citizens doing their job calling out their government.

That being said, the market could do without the uncertainty and its repercussions, so it's best if this issue just comes to pass.

[1Referee]

It's reassuring to see that South Korea has strong institutions, and it seems like regulations are going to be handled in a fair manner.

Nothing is set in stone yet, but it's at least good to hear something different for once. I am not at all against regulations, and even believe that as long as they are fair, they will be a major help for Bitcoin to reach further adoption. I find it funny that the traditional market shills always directly talk about governments regulating Bitcoin to death, but they clearly miss the bigger picture here, and that's the fact that there is enough place for another asset class. People for once need to distance themselves from the thought that if something isn't issued by the government, that it is a scam or fraud by default. And then we have also those idiots saying that Bitcoin isn't backed and insured by the central bank...... Please, just f off already.

[buwaytress]

I know this will seem like a small cry in favour of cryptocurrency in South Korea but I honestly cannot really understand why even this crackdown on exchanges are having a negative reaction (people selling crypto in South Korea). Perhaps I'm ignorant of the sentiment over there, but surely they must realise that their govt has already repeatedly come out to say they're not banning Bitcoin at all and simply stepping in to intervene in the way exchanges are run there? I mean, a lot of the pressure to me seems to come from the public themselves, traders who lost a lot of money to the hacks, traders who lost money during the flash crashes on these platforms, those who lost money because of fake Bitcoin forks...

So I'm trying to understand what the fuss is here. They've pressured the govt to step in and it has. And they've clarified this will never turn into a Bitcoin ban. So why the sell off?

[senin]

In fact, it is confirmed that there are no particularly bad news from South Korea. It only checks the rules of trading in the crypto currency. At the same time, the government confirmed their lack of authority to close exchanges and exchangers, even if they violated the rules of trade. Panic more than any bad news.

[Gotottack]

Yes you know once a business exists online, it can hardly be regulated but there sure are effective means to combat such. It will require money, time and effort but it will all be worth it if you see that government control in terms of cryptocurrencies is back. I think South Korea has the means to shut all transactions involving Bitcoin but the only thing they have to deal with is the coming in and out of money in their treasury through the remittances. They definitely benefit from it.

[1BTC EQUALS 1CAR]

I admire South Korean people because they are fighting for what is right unlike China that almost ban everything. First ICO then exchanges and strict mining. We should thank all the South Koreans after all.