The period of uncertainty in the South Korean Cryptocurrency ecosystem is over, as authorities have pledged they will now support the growth of the crypto ecosystem, henceforth.
Victory for Crypto Investors
Cryptocurrency investors can have peace of mind as the head of South Korea’s financial regulator and watchdog has said that authorities will support cryptocurrency trading and banks will be encouraged to carry out virtual currency-related transactions.
Just yesterday, the chief of South Korea’s Financial Supervisory Services (FSS), Choe Heung-sik noted that Korea’s cryptocurrency space now have the support of the government. He also said that authorities will have no issues with virtual currencies transactions that follow the latest guidelines created by the government and regulatory authorities.
In a meeting with major Korean cryptocurrency exchanges, Choe reiterated that the government:
“Will support [cryptocurrency trading] if normal transactions are made.”
“normal transactions” are those transactions that meet the KYC and AML standards. The official also hinted that the government has now taken a positive stance over bitcoin and other cryptocurrencies and would only continue to uplift the growth of the industry provided the crypto industry keeps being run in a transparent manner.
Since the law took effect, anonymous trading by cryptocurrency traders have been halted and traders are required to use their real names with their digital currency exchange accounts, cryptocurrency wallets, and bank accounts.
For now, anonymous traders can trade virtual currency using their cryptocurrency holdings on virtual accounts. However, all cryptocurrency-to-fiat transactions (buying, selling, and withdrawals) must meet the new KYC standards.
Some Banks are still Reluctant
In line with the latest development, quite a number of big banks have started facilitating cryptocurrency transactions and issuing new bank accounts that conform with the KYC rules to traders.
However, several other banks are yet to resume offering crypto-related services.
To mitigate this challenge, Choe stated that the government will soon step into the matter and “encourage” such banks to resume transactions with cryptocurrency exchanges and traders.
This latest development along with some other factors is having a positive impact on the price of bitcoin and other cryptocurrencies. At press time, the price of bitcoin has crossed the $11k area.
