[2018-02-20] South Korea Govt Will Support Cryptocurrency Transactions

[FollowSynergy]

The head of South Korea’s financial regulator and watchdog has now confirmed the government will support cryptocurrency trading while encouraging banks to facilitate transactions with exchanges, effectively killing any fears of a rumored ban.

In noteworthy remarks made today, South Korea’s Financial Supervisory Service (FSS) chief Choe Heung-sik said the government will back the cryptocurrency industry to develop in the country. Specifically, the official said the government will support “normal transactions” of cryptocurrencies, three weeks to the day after the government moved to curtail anonymous accounts trading in crypto markets in late January.

As reported by Korean publication Yonhap, Choe told representatives from cryptocurrency exchanges in a recent meeting that the government “will support [cryptocurrency trading] if normal transactions are made”, suggesting the government will encourage the growth of the industry under know-your-customer (KYC) transparency.

Korean regulators mandated the use of a real-name trading system from January 30 wherein cryptocurrency traders and investors are required to use their real names with their cryptocurrency exchange accounts or wallets and bank accounts, a move to put an end to the anonymous trading of cryptocurrencies. While anonymous account holders can continue to buy or sell cryptocurrencies using their holdings via virtual accounts, any new cryptocurrency purchases or withdrawals in fiat will require compliance with the new KYC rules.

Although a number of major banks began issuing new virtual bank accounts to cryptocurrency traders as a part of the real-name trading system, several local banks have reportedly been reluctant to follow suit with the government’s intervention trading last month.

To remedy the situation, Choe revealed the government will “encourage” banks to establish ties and engage in transactions with cryptocurrency exchanges.

Choe’s remarks today further cements a striking turnaround from a ban on cryptocurrency trading first proposed by Korea’s Justice Ministry. Instead, South Korea is reportedly considering its own approval system in granting licenses to cryptocurrency exchanges who play by regulatory rules and guidelines.

https://www.ccn.com/south-korea-govt-will-support-cryptocurrency-transactions-financial-regulator/

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[DeadCoin]

The head of South Korea’s financial regulator and watchdog has now confirmed the government will support cryptocurrency trading while encouraging banks to facilitate transactions with exchanges, effectively killing any fears of a rumored ban.

In noteworthy remarks made today, South Korea’s Financial Supervisory Service (FSS) chief Choe Heung-sik said the government will back the cryptocurrency industry to develop in the country. Specifically, the official said the government will support “normal transactions” of cryptocurrencies, three weeks to the day after the government moved to curtail anonymous accounts trading in crypto markets in late January.

As reported by Korean publication Yonhap, Choe told representatives from cryptocurrency exchanges in a recent meeting that the government “will support [cryptocurrency trading] if normal transactions are made”, suggesting the government will encourage the growth of the industry under know-your-customer (KYC) transparency.

Korean regulators mandated the use of a real-name trading system from January 30 wherein cryptocurrency traders and investors are required to use their real names with their cryptocurrency exchange accounts or wallets and bank accounts, a move to put an end to the anonymous trading of cryptocurrencies. While anonymous account holders can continue to buy or sell cryptocurrencies using their holdings via virtual accounts, any new cryptocurrency purchases or withdrawals in fiat will require compliance with the new KYC rules.

Although a number of major banks began issuing new virtual bank accounts to cryptocurrency traders as a part of the real-name trading system, several local banks have reportedly been reluctant to follow suit with the government’s intervention trading last month.

To remedy the situation, Choe revealed the government will “encourage” banks to establish ties and engage in transactions with cryptocurrency exchanges.

Choe’s remarks today further cements a striking turnaround from a ban on cryptocurrency trading first proposed by Korea’s Justice Ministry. Instead, South Korea is reportedly considering its own approval system in granting licenses to cryptocurrency exchanges who play by regulatory rules and guidelines.

https://www.ccn.com/south-korea-govt-will-support-cryptocurrency-transactions-financial-regulator/

Does this news confirm that banning of traders / exchanges in South Korea was a rumor ? Its really consoling to hear that South Korea has understood the benefits of allowing crpto currencies / trading / exchanges in their countries. Even banks were asked to support crypto currencies trasactions to their concern bank accounts when trading. A good decision from the government end. Hope this again pushes back the bitcoin value claim too high. This would support other crypto currencies values grow as well.

[IconFirm]

Like they (or any other Government) had a choice.......

[Xavofat]

The problem is that the definition of "normal transactions" is pretty vague - it could pretty much mean whatever the government decides is illegal for crypto (which could well involve pretty intense regulation of exchanges) or crypto could (and hopefully will) follow similar rules to fiat.

I suspect they're well aware that BTC transactions will happen regardless of whether they deem them illegal or not, so their hope will be that whatever approach they take will reduce the amount of illegal transactions taking place, not that they'll manage to stop them.

Does this news confirm that banning of traders / exchanges in South Korea was a rumor ?

For now at least, yes.  However, government stances can change pretty quickly.

[Qartersa]

The head of South Korea’s financial regulator and watchdog has now confirmed the government will support cryptocurrency trading while encouraging banks to facilitate transactions with exchanges, effectively killing any fears of a rumored ban.

In noteworthy remarks made today, South Korea’s Financial Supervisory Service (FSS) chief Choe Heung-sik said the government will back the cryptocurrency industry to develop in the country. Specifically, the official said the government will support “normal transactions” of cryptocurrencies, three weeks to the day after the government moved to curtail anonymous accounts trading in crypto markets in late January.

As reported by Korean publication Yonhap, Choe told representatives from cryptocurrency exchanges in a recent meeting that the government “will support [cryptocurrency trading] if normal transactions are made”, suggesting the government will encourage the growth of the industry under know-your-customer (KYC) transparency.

Korean regulators mandated the use of a real-name trading system from January 30 wherein cryptocurrency traders and investors are required to use their real names with their cryptocurrency exchange accounts or wallets and bank accounts, a move to put an end to the anonymous trading of cryptocurrencies. While anonymous account holders can continue to buy or sell cryptocurrencies using their holdings via virtual accounts, any new cryptocurrency purchases or withdrawals in fiat will require compliance with the new KYC rules.

Although a number of major banks began issuing new virtual bank accounts to cryptocurrency traders as a part of the real-name trading system, several local banks have reportedly been reluctant to follow suit with the government’s intervention trading last month.

To remedy the situation, Choe revealed the government will “encourage” banks to establish ties and engage in transactions with cryptocurrency exchanges.

Choe’s remarks today further cements a striking turnaround from a ban on cryptocurrency trading first proposed by Korea’s Justice Ministry. Instead, South Korea is reportedly considering its own approval system in granting licenses to cryptocurrency exchanges who play by regulatory rules and guidelines.

https://www.ccn.com/south-korea-govt-will-support-cryptocurrency-transactions-financial-regulator/

How can real-name trading system be ever possible? Well yes, maybe for some. But you know, this is basically why the people are resorting to cryptocurrencies -- because it offers anonymity for people who transacts money and makes business without the pains of tedious bank and government processes in terms of business and taxation regulations.

I know the Korean government are all for honesty policy but I think they cannot get a majority for this move because it will definitely make crypto's enticing processes nugatory. 

[numizmat]

After months of confusion regarding the status of cryptocurrencies in South Korea, the Financial Supervisory Service (FSS) governor, Choe Heung-sik, has finally announced that the country will not be turning away from cryptocurrencies.

Choe reportedly reassured cryptocurrency exchanges that South Korea will allow cryptocurrency transactions. However, the only condition that stands between the buyer and the seller is a ‘normal transaction’. It means that users must use their real names in future purchases, a rule that was passed this year in January. It is meant to prohibit illegal cryptocurrency activities and requires a user to connect their exchange platform to their personal bank in order to verify their information.

[MoonJeina]

Is this even real . After so much chaos and so much drop in bitcoin value at that phase , they are confirming the bitcoin transactions to be valid and legalized in South Korea . Even though it is a relief since South Korea is one of the biggest hubs of bitcoin , it makes me really confused why there was so much resistance at the first place .
They have definitely accepted the trading and use of bitcoin in their country but the restriction of using our own names on the wallets and for the transactions makes the concept of bitcoin very different . This will be an another step of government towards the halting of "so called privacy and anonymous" feature of bitcoin

[greeklogos]

South Korean government seems play ping pong with regulation of crypto currencies. This country has a big wight in all crypto world and all kind of news from there shacked the market not once. One day they forbid something the other support crypto. I even became a little sceptical about all those news from there, I am simply patiently wait for South Korea's final decision about crypto.

[glowing10]

South Korean government seems play ping pong with regulation of crypto currencies. This country has a big wight in all crypto world and all kind of news from there shacked the market not once. One day they forbid something the other support crypto. I even became a little sceptical about all those news from there, I am simply patiently wait for South Korea's final decision about crypto.

Yes it is having a roller coaster ride and due to which the market has sink couple of times badly and thus now finally we have this news that they will support the transactions. had this being the initial statement only it would have being the best thing as market today would have being above 20k and not fallen this much.