Definitely influenced by their recent hacks and Japan’s latest heist, South Korean policymakers have just announced that they are considering closing down all of their domestic cryptocurrency exchanges. This decision has been made by governments from around the world are aiming to tighten up regulations on the cryptocurrency trade. They feel it is the only way for them to put a stop to all the money laundering and hacks going on.
“The government is considering both shutting down all local virtual currency exchanges or just the ones who have been violating the law.” South Korea’s chief of the Financial Services Commission said when questioned at the parliament.
Lee Ju-yeol, the governor of The Bank of Korea said in a separate statement, “Cryptocurrency is not a legal currency and is not being used as such as of now.”
Given how popular cryptocurrencies have become in the past couple of years, government from around the world are totally stumped as to how they can prevent crimes linked to the currency from happening.
This sudden news didn’t come without having an instant effect on the exchanges in South Korea. In fact, since the report prices have tumbled. Bitcoin alone saw itself fall by 18%.
When it comes to the topic of cryptocurrency, the South Korean government is completely split. Half of the government’s officials want to embrace it, while others want it gone altogether. That said, minister of the office for government and policy Hong Nam-ki stated that a decision will be made on Thursday during the parliamentary session.
South Korea being one of the world’s big hubs for cryptocurrency has been in a state of rage since the announcement was made. In an attempt to stop the ban, thousands of Koreans have gone onto the presidential Blue House website to sign a petition.