The South Korean Fair Trade Commission (KFTC) does not have the power to close the cryptocurrency exchanges. "It's impossible in reality," said the president of the KFTC. The agency is currently investigating 13 major exchanges operating in the country for alleged violations of the e-commerce law.
The KFTC is currently investigating 13 major cryptocurrency exchanges for alleged violations of South Korea's e-commerce law, including Bithumb, Coinone and Korbit, according to local media reports.
However, KFTC President Kim Sang-Joo said on Wednesday that "the e-commerce law does not have the right to close virtual exchanges," adding that "it's impossible in the real world."
We do not have the power to close virtual currency exchanges ... It is clear that there is no appropriate legal provision in this area.
When asked if other ministries could ban or close cryptocurrency exchanges, Kim pointed out that "cryptocurrency has recently come into existence and other laws do not have the specific legal provisions relating to cryptocurrency." when the exchanges close.
In addition, Kim commented on what Justice Minister Park Sang-ki recently said about cryptocurrency trading as a form of gambling, saying:
I do not agree with the attitude of the Minister of Justice, Park Sang-ki, who said that "investment in cryptocurrency is a game".
Kim also noted Wednesday that "many illegal activities were discovered during the investigation".
For exchanges that violate the law, "I will inform them and take the appropriate steps" to remedy the situation, he detailed. "In particular, we will seek voluntary reforms at least in the first half of the year," he added. However, if the problems persist, the FTC will seek "more direct reforms through legislative changes in the second half of the year".
Meanwhile, other regulators are discussing alternative measures to avoid overheating in speculation around cryptocurrencies and illegal activities in the crypto market, Yonhap reported. According to the Financial Services Commission (FSC), "the government is studying both options to end virtual currency trading or to close only those exchanges that have committed illegal acts," the media said.
"We are doing what we can do now under the current law," said Hong Nam-ki, head of the Bureau of Policy Coordination, quoted by KBS on Thursday.
