Just a few days ago Bitcoin price got hit hard from a false rumor that South Korea are banning Bitcoin exchanges. Now they are singing a different tune.
It is reported Korean government is considering adopting cryptocurrency futures similar to Bitcoin futures listed on CBOE and CME in an attempt to reduce Korea premium. The government mentioned it is considering closing down the exchanges only a few days ago and this is a big change in their stance. If cryptocurrency futures are launched, cryptocurrencies will be recognized as financial products and be given legitimacy in South Korea just like in Japan.
The Chicago-style futures trading system introduced last year by the US government is expected to be applied to Korea. It is based on the judgment that the local outflow is serious, for example, by making virtual money abroad by cashing in on the money.
According to the government and the financial industry on August 18, the government plans to create a Korean futures trading system that can recognize virtual money as a financial instrument and buy and sell derivatives such as futures and options like the Chicago Futures Exchange (CME). It means to revise the Capital Market Law and other regulations so that virtual currency is recognized as a financial product and transactions can be made within the system.
Until last week, related ministries such as the Ministry of Justice, the Financial Services Commission, and the Ministry of Strategy and Finance were sharply opposed in relation to the regulation of virtual currency. However, the recent prime minister '
A senior official of the former finance ministry said, "The financial authorities have decided to allow transactions within the system, but management oversight on money market manipulation, money laundering and tax evasion will proceed more thoroughly" "I know that we are preparing to introduce the Chicago-style futures exchange under the leadership of Kim Yong-
Actually, the government is looking forward to introducing futures trading system. A financial official said, "Korea has a special Kimchi premium due to the difficult structure of foreign exports to foreign countries due to the Foreign Exchange Transactions Act." If official futures transactions are made, prices will become similar to overseas prices and hedge transactions in domestic and overseas markets Risk avoidance) will also have a stabilizing effect on prices, especially in the case of illegal or short-lived virtual currency transactions that will flow out to foreign countries. "
The price difference between virtual currencies traded in each country is reduced, and stabilization is expected, but there is a disadvantage that price fluctuation can be larger.
A senior official of a financial association said, "If a Korean-style virtual money futures trading system comes out, there will be illegal transactions and prevention of foreign currency spillage." As the virtual money is recognized as a financial product, it is expected to be taxable as well. .
Some argue that virtual currency futures trading could produce another speculative force.
Kim Jae-young, a professor at Korea University, said, "Virtual money is a private money, and control of the private sector will increase the opposition of investors." The United States is the way the government supports the corporations, while Korea is the opposite. It is similar to China, but it is different from the US system. "
Professor Kim said, "I do not know if we should introduce a similar system to the US market in the situation that the Korean financial authorities predicted the control of the virtual money market." In Korea, since the virtual money market is immature and can not be regarded as a financial advanced country Another speculative power is likely to form. "