Bitcoin is on the rise all over the world and the South Korean market is no exception. Their Bitcoin market has skyrocketed to such heights that financial regulators in the country are going frantic over the future crimes that can stem from the trading of cryptocurrencies, especially since local banks are now offering cryptocurrency accounts. That news alone was enough to send financial regulators into a tailspin and begin clamping down on all the banks involved.
In December of 2017, multiple ministries in South Korea held a meeting that resulted in the government passing a number of measures aimed at cryptocurrency exchanges. FSC Chairman, Choi Jong-ku believes these steps are crucial in preventing future crimes linked to cryptocurrency.
He made his feelings quite clear in a statement he released during a recent press conference. “Virtual currency is currently unable to function as a means of payment and it is being used for illegal purposes like money laundering, scams and fraudulent investor operations. The side effects have been severe, leading to hacking problems at the institutions that handle cryptocurrency and an unreasonable spike in speculation,”
The new measures will completely prevent people from making anonymous accounts. Every account will be meticulously inspected to assure that the owner is who they claim to be. The government holds no doubt that this move will prevent widespread criminal activity and also maintain security within the local market.
Amidst recent incidents involving Youbit and their system breach that lost 17% of all their user funds and caused the exchange to completely flounder, Choi had great concerns over hacking and other scams. He has stated that authorities will keep an extra watchful eye out for criminal activity and sanction heavily anyone involved.
According to Choi, these measures will come into play in about a week. All eyes are out for people concocting money laundering, pyramid schemes and market manipulation. With banks getting involved the government’s actions should come as no big surprise.