South Korea is the third largest cryptocurrency market in the world, behind only the United States and Japan.But, so far the crypto journey in the country has seen numerous challenges, with the government continuously monitoring cryptocurrency activity and even banning ICOs from operating locally as of September 2017.
The government of South Korea recently announced a set of regulations to control the cryptocurrency market in the country with the goal of protecting the country’s investors against fraud.
of Cryptocurrency in South Korea
The South Korean government introduced new regulations regarding cryptocurrency the last week of December 2017. The regulation prohibits anonymous accounts to perform cryptocurrency transactions. The regulations have also barred minors as well as Koreans not residing in Korea from trading in cryptocurrency.
Banks as well as other financial companies operating in South Korea have also been told to stay away from cryptocurrencies. The Ministry of Justice of South Korea will continue to monitor cryptocurrencies closely and introduce new rules and regulations as they deem fit.
of ICOs in South Korea
Just days after the Chinese government’s crackdown and banning of local ICOs in September, the South Korean government followed suit. As per the South Korean government, the reasoning behind banning the ICOs was due to companies using it as a tool to defraud investors.
The country has also prohibited its citizens from engaging in ICOs and has stated that any South Korean citizen doing so would be hit with harsh penalties, the extent of which are not yet clear. . Analysts believe that the ban imposed is temporary, and could be removed once stringent regulations are put in place to control scams and frauds.
Markets in South Korea
Being one of the largest markets for cryptocurrency transactions in the world, South Koreans have invested in the crypto market at an unprecedented rate, leading the South Korean government to impose new regulations around cryptocurrencies. But even after strict regulations, the enthusiasm for cryptocurrency in South Korea continues.
The Korean Ministry of Justice is planning to implement further regulations in 2018, though it is not yet clear whether they will encourage or discourage engaging with cryptocurrency markets.
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