Reportedly, the South Korean authorities to impose country restrictions on trading cryptocurrencies, such as bitcoin.
The South Korean government has put forward new rules for the market trading in cryptocurrencies in the country, which is one of the largest in the world.
Reuters quotes government:
The government has warned that virtual coins can’t play the role of real currency and can cause significant losses from excessive price fluctuations.
The government statement also refers to surcharges on the prices of cryptocurrencies that are traded on the South Korean stock exchanges, in comparison with other exchanges in the world. As previously reported, investors in South Korea pay from 12% to 16% of the allowances for trading Monero and Ripple, respectively, due to the insufficient supply in the market, along with growing demand for crypto-currencies from retail investors.
“Officials believe the hype around trading cryptocurrencies excessive … and we can’t lose sight of this abnormally speculative situation”, – stated in the government statement, according to AFP.
The new laws would allow regulators to close the exchange
Reportedly, the new restrictions will include a prohibition on opening anonymous cryptocurrency accounts to combat money laundering and financial fraud.
“We will react strongly to such crimes, applying the maximum possible punishment to the perpetrators,” it said in a statement and added that the authorities “will keep all policy options open, including the closure of cryptocurrency exchanges, if necessary.”
New laws grant regulators the authority to close the cryptocurrency exchanges, if necessary, as indicated by the government. This radical ban was recommended by the Ministry of justice, according to the statement. Earlier this month, the Prosecutor of the Ministry of justice responsible for the crime with cryptocurrencies, said that these measures aimed at protecting retail investors from potential fraud.
The official said:
“We do not exclude the possibility of a ban on the trade of all cryptocurrencies. We are aware of many problems resulting from such trading, and exploring possibilities of their control”.
According to reports by AFP, next month will be closed all accounts are anonymous traders, which are now used.
The message about the restrictions came just days after South Korean authorities conducted inspections of several bitcoin exchanges in the country after a hacker attack on December 19 at Youbit, Seoul stock exchange, which shortly thereafter declared bankruptcy.