South Korea increases pressure on the cryptocurrency exchanges. Is preparing to ban them?

South Korea increases pressure on the cryptocurrency exchanges. Is preparing to ban them?

As reported by Reuters at the offices of major South Korean exchanges Bithumb and Coinone on Wednesday and Thursday visited the police and tax.

The occasion was the investigation of tax evasion.

One of the employees Coinone told the news Agency that:

Police are investigating the activities of our company since last year, they think what we do is gambling.

The employee also confirmed that the exchange is cooperating with the investigation.

In a letter to CoinDesk, a representative Bithumb confirmed that they met with the Korean tax authorities.

It is true that the national tax service visited Bithumb. However, the police we had not yet come.

South Korean news service SBS reported that South Korean Department of justice is preparing regulations that will completely stop the activities of cryptocurrency exchanges in the country.

The Ministry of justice is working on creating its own bill, according to which all brokerage activity associated with cryptocurrencies is unlawful. This week, the Ministry should begin the discussion of this bill.

And Reuters reports that the Ministry has already finished work on the bill.

There are big concerns about virtual currencies, and the Ministry of justice is preparing a bill to ban the trade of cryptocurrency through exchanges.

Such news suggests that the pressure from the government on the cryptocurrency industry is increasing. Earlier this week, the Korean financial monitoring service and the financial Supervisory Service said that they check six banks for compliance with rules for combating money laundering because of their connection with cryptocurrency exchanges.

The government has already announced in December that it intends to more tightly monitor trades on cryptocurrency exchanges as well as intended to stop anonymous trade.

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