S. Korea Regulator Seeks Cryptocurrency Normalization, Amid Investment Frenzy
In complete reversal from last month controversial clampdown on cryptocurrency, South Korea’s financial regulator has called for the development and “normalization” of cryptocurrencies in the country.
This move comes amid an investment frenzy over the past few months as speculations of a total cryptocurrency ban became overheated in the country. However, the Finance Minister Kim Dong-yeon, reinforced the government’s message that it does not seek to suppress the nascent market, but sees regulation as the immediate option for addressing concerns, as opposed to an outright ban on trading.
According to a Reuters report, Choe Heung-sik, Head of the Financial Supervisory Service (FSS), said late Tuesday, it hopes to see South Korea normalize the virtual currency business in a self-regulatory environment.
FSS has been leading the government’s regulation of cryptocurrency trading as part of a task force.
In an early report, Choe Heung-sik confirmed that the government would support “normal transactions [non-anonymous] cryptocurrency. He stressed that the government “encourage” traditional banks to establish links and facilitate transactions with cryptocurrency exchange through virtual accounts, a move that would facilitate access to exchanges among new crypto traders.
“The whole world is now framing the outline (for cryptocurrency) and therefore (the government) should rather work more on normalization than increasing regulation,” Choe said while speaking to reporters.
The remarks by the FSS chief has calmed the nerves of investors, with a representative for the country’s industry body calling the change of tack a “positive sign for the market.”
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