Regulators in South Korea have been working to set new regulations on the cryptocurrency industry, effectively ensuring that trading of the different coins will slow down within the country. The regulators in the country have stated that the market is largely driven by speculation and illegal activity. The regulations that they are hoping to put in place would effectively make it illegal for any foreigners or minors to open a cryptocurrency account.
How they will police this, they have not yet released, but hopefully more details are to come. The vice chairman of the Financial Services Commission, Kim Yong-beom announced several measures that would “ban anonymous trading on domestic exchanges, while foreigners and minors would be completely banned from trading through cryptocurrency accounts. Both measures go into effect Jan. 30.” This is the first time that the country has actually put into place any hard deadlines for a restriction. They have been threatening the use of these new regulations for quite some time, showing their uncertainty and dislike for the cryptocurrency market, but before this they have not acted upon it.
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The chairman further stated that “The government is concerned about manipulation of market conditions and injection of illegal funds while market funds are leaked into speculative investments,” he added. “We view that foreigners’ and minors’ investments contribute to our areas of concern.” The ban would include foreigners, residents, non-residents and “kyopo” ethnic Koreans with foreign citizenship. Minors are also not allowed to trade the currencies as mentioned before. It seems as though the Korean nation is treating this industry like it is a type of gambling. This has not occurred before, and will likely not be great for the crypto economy in that nation. The hopes are high that the regulatory measures will slow down in the near future.