South Korea Govt Will Support Cryptocurrency Transactions: Financial Regulator

The head of South Korea's financial regulator and watchdog has now confirmed that the government will support cryptocurrency trading while encouraging banks to facilitate trading transactions, thereby removing any fear of a ban.

In noteworthy remarks today, Choe Heung-sik, chief of the Financial Supervision Service (FSS) of South Korea, said the government will support the cryptocurrency industry to expand in the country. Specifically, the official said the government will support "normal transactions" of cryptocurrencies, three weeks to the day after the government moved to reduce anonymous accounts trading in cryptographic markets by the end of January.

As reported by the Korean publication Yonhap, Choe told representatives of cryptocurrency exchanges at a recent meeting that the government will "support [cryptocurrency trading] if normal transactions are made", suggesting that the government will encourage Industry growth (KYC) transparency.

Korean regulators have mandated the use of a real name trading system from January 30, in which cryptocurrency traders and investors must use their real names with their cryptocurrency swap accounts or their wallets and accounts banking. . While anonymous account holders can continue to buy or sell cryptocurrencies using their holdings via virtual accounts, any new purchase or withdrawal of fiat cryptocurrency will require compliance with the new KYC rules.

Although a number of major banks have begun issuing new virtual bank accounts to cryptocurrency traders under the real name trading system, several local banks would have been reluctant to follow suit last month.

To remedy the situation, Choe revealed that the government will "encourage" banks to establish links and engage in transactions with cryptocurrency exchanges.

Choe's remarks today further cement a striking reversal of a cryptocurrency trade ban first proposed by the Korean Justice Ministry. Instead, South Korea would consider its own approval system by licensing cryptocurrency exchanges that comply with regulatory rules and regulations.