South Korean Government Denies Ban on Cryptocurrency Trading

The Blue House which is the office as well as the residence of the President of South Korea, has announced that there would be no ban on cryptocurrency trading in the country in the short term.

The spokesperson states,

“The South Korean government has no other choice but to follow the regulatory frameworks and trends established by other leading governments. While there certainly exists a negative reputation attached to the cryptocurrencies, the government’s stance is to allow what has to be allowed, for the benefit of the South Korean market.”

The South Korean government’s official rebuttal came against reports of massive criticism against the Ministry of Justice, which had independently announced the plans of banning cryptocurrency trading in the country. It has been reported that the Justice Ministry announced its decision without the permission of South Korea’s Ministry of Strategy as well as other agencies involved in the South Korean digital currency regulation team.

The government also released a statement claiming that more than 60,000 South Koreans have voted in a petition calling for the removal of the head of Ministry of Justice, Park Sang-Ki, who was responsible for the premature announcement of cryptocurrency ban in the country to be implemented by the government from January 11th 2018.

Immediately after Park’s announcement, the Ministry of Strategy and Finance were quick to distance themselves from his statement by reiterating that they do not agree with the Ministry of Justice’s decision. They also claimed that they were able to gain knowledge of Park’s decision only through media reports, with the decision not being agreed upon by the members of the Korean task force.

In 2016, South Korea’s former President, Park Geun-hye, was impeached by the people of the country who came out in numbers to protest against alleged financial irregularities. She is currently in jail facing severe charges under Korean law. At that time, millions of South Koreans had surrounded the Blue House until South Korea’s apex court moved forward with impeachment proceedings. Since then, the government, led by President Moon Jae-in, has promised to keep the public opinion at the forefront while working on any decision.

Analysts feel that the South Korean government may move towards regulating the local cryptocurrency markets in the long term. Previously, a spokesperson from the South Korean Crypto Task Force had stated that the country would establish similar regulations followed by the US and Japan on digital currencies.

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