room for cryptocurrency transactions to be exploited for illegal activities, such as crimes, money laundering and tax evasion the FSC added in the document. The implementation of those news rules came after mixed messages about regulation from South Korean officials at various ministries spooked cryptocurrency markets earlier this month. An initial report from Reuters, which has since been corrected, stated that the South Korean government is expected to close down cryptocurrency exchanges in the local market. My number-one focus on cryptocurrencies, whether that be digital currencies or bitcoin or other things, is that we want to make sure that theyre not used for illicit activities, said Steven Mnuchin, Donald Trumps most senior financial policymaker.
As it had noted in its statement released this week, the South Korean government has acknowledged bitcoin as a legitimate asset class and where to create a bitcoin based business europe is moving towards regulating bitcoin as the market continues to grow. "It's a good thing anytime an investment exchange knows their client and makes sure that their clients are doing things that are above board legally he said, adding that those rules allowed for greater scale and legitimacy. The Ministry of Justice has drafted a special cryptocurrency law and is considering the possibility of closing down exchanges involved in suspicious or illicit activities such as money laundering. Rather, the South Korean government is aiming to better regulate the market. In the first week of December, a spokesperson of a cryptocurrency task force formed by the South Korean Ministry of Strategy and Finance, Financial Services Commission, Ministry of Justice, Fair Trade Commission, and Financial Supervisory Commission stated that the South Korean government will follow the. This article is not going to suggest that regulation would push bitcoin s price down that would be silly but the trend in recent months has been that all talk of regulation puts it down. As such, regulation might be good for the price and good for the world in the long term. Not everyone would, of course; but not everyone abides by any law. Regulation and risks within the space have come back under the spotlight after some 530 million worth of virtual money was stolen from Japanese exchange Coincheck. We feel very strongly that we need to have this kind of regulation all over the world, Sigal Mandelker, the Treasury undersecretary for terrorism and financial intelligence, said.
But it was part of a much broader trend countries around the world have already introduced new rules, and. Korea will move to rein in the frenzy around bitcoin by banning minors from opening accounts on exchanges, and possibly by taxing capital gains from the trading of cryptocurrencies. Plans to introduce regulations in South, korea had spooked investors earlier this month.