Korean government holds meeting to regulate cryptocurrency


Things are looking up for investors in virtual
currencies this year. Still, there are lingering concerns of a bubble…
with more than a million Koreans believed to hold at least some Bitcoin. Top officials met to formulate ways to regulate
that market. Kim Hyesung gets us up to speed with the developments. The Korean government has announced a series
of measures to curb speculation on cryptocurrencies amid what appears to be a speculative frenzy. During an emergency meeting Wednesday, senior
officials from various ministries, including justice, finance, and others agreed to crack
down on cryptocurrency-related crimes such as hacking and illegal foreign exchange transactions. The government is concerned that a cryptocurrency
market bubble could cost people significant amount of money, so it said banks will have
to thoroughly verify users’ identities and make sure they conduct cryptocurrency transactions
only with their own accounts. Minors and foreigners will be banned from
opening investment accounts. On top of individuals, financial institutions
will also be banned from buying and selling virtual currencies. They are also banned from raising money through
bitcoin and other cryptocurrencies, making Korea the second country after China to do
so. Such measures come amid the growing craze
over bitcoin. The virtual currency has been trading in Korea
at a significant premium over prevailing international rates. As for taxing cryptocurrency capital gains,
government officials said they will announce details after discussing with experts through
a taskforce team and refer to other countries’ polices so as not to hinder the development
of technologies like blockchain. Kim Hyesung, Arirang News.

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