South Korea has set the record straight with regard to its conflicting views on cryptocurrency trading. After suggesting earlier this month that the country could ban trading, South Korean finance minister Kim Dong-yeon on Wednesday said they have no intention to ban or suppress cryptocurrency trading.
Instead, the finance minister said the government's immediate goal is to regulate exchanges.
South Korea's official stance on cryptocurrency trading is in stark contrast to that of China. After banning cryptocurrency exchanges last year, authorities a few weeks back noticed an uptick in activity on what Bloomberg called "alternative venues" which prompted the government to escalate its crackdown on cryptocurrency trading.
South Korea is a major hub for cryptocurrency trading. News that it doesn't plan to ban local digital coin exchanges can only be viewed as good news for local and international investors alike.
In related news, South Korean customs officials on Wednesday also announced the discovery of illegal cryptocurrency foreign exchange trading valued at nearly $600 million.
As Reuters highlights, only licensed banks and brokers in South Korea can offer foreign exchange services. Furthermore, residents and local companies that move more than $3,000 out of the country at any given time are required to submit tax documents explaining the reasoning for the transfer. Those who transfer more than $50,000 annually must also submit similar explanatory documents.