The South Korean Commission on fair trade (KFTC) has no authority to close the cryptocurrency exchanges.
“In fact, it is impossible”, – said the Chairman of the KFTC.
Currently, the Agency is investigating the activities of the 13 major stock exchanges operating in the country. Cryptocurrency exchanges, including Bithumb, Coinone and Korbit, are suspected of violation of the law on electronic Commerce.
However, the KFTC Chairman Kim sang-Joo said on Wednesday that “the law on electronic Commerce does not mean the closing of cryptocurrency exchanges,” adding that “it is in fact impossible.” In an interview on CBS radio, he said :
We have no authority to close the cryptocurrency exchanges. For this, there are no appropriate legal provisions.
When asked whether other ministries to ban the activities or even close cryptocurrency exchanges, Kim said: “cryptocurrency appeared recently, and in our laws there is no exact legal provisions that allows to close the exchange.”
In addition, Kim noted that I fundamentally disagree with the recent statement of the Minister of justice Park sang-Ki, who said that cryptocurrency trading is a form of gambling.
Kim also announced on Wednesday that “during the investigation it was discovered a large quantity of illegal actions”.
Of the exchange who violates the law will be notified and their address will be taken.
“In particular, we call for voluntary reforms, at least in the first half of the year,” he added. However, if problems remain, the FTC in the second half of the year will resort to “more stringent reforms, through legislative amendments”.
Meanwhile, other regulators discuss alternative measures to prevent speculation and illegal activity in the cryptocurrency market, according to Yonhap . According to the financial services Commission (FSC), “the government is considering both options, as the closure of cryptocurrency exchanges, has committed illegal acts, and a complete discontinuation of all exchanges in the state. Meantime they do what current law allows.