Few hours ago Korean government has made press releases regarding their new policy on crypto currency. Many harsh titled articles have been written after the press release like " Korean Government to close crypto exchanges" this article without any contents but headline has made great fud which lead 16% drop on market. But after reviewing the official press release document that Korea government has issued on their website I like how Korean government is heading. I will exclude my personal thoughts and translate word to word of press release document so please comment below and tell me your thoughts.

Korean government prepares special measures to eliminate current speculation investment on crypto currency.

• Real name registration on bank account is needed to in order to make a trade in crypto currency( currently Korean exchange uses virtual bank account to dposite and withdraw KRW)
• Crypto currency related crime will be punished intensively by prosecution and police.
• Ministry of justice propose on closing crypto currency exchanges

I. Real identity registration for trading crypto currency.

• Currently virtual bank accounts, which were use to pay taxes, utility, and penalty fees conveniently, are being used as trading accounts for crypto currency. This has spread speculative investments and harmed transparency of financial transactions.

• In order to make transparency on crypto currency transactions FSC(Financial Supervisory Comission) and FSS(financial Supervisory Service) has decided to stop trades on underage traders and non-residents.

1. Prohibition on providing virtual bank account services (2018 Jan)

• In future it will be prohibited to use virtual bank accounts, which is difficult to verify persons identity.
• Converting existing service to only whom has confirmed their identity, deposit / withdrawal will be only maid on verified account.

• This will make banks to easier to verify the user's identity because same account is used as deposit and withdrawal account.
  ① New issuance of a virtual bank account for a crypto currency exchange is immediately suspended
  ② Abandonment of virtual bank accounts for new members of existing virtual account exchanges
  ③ Transferring the account of the existing virtual bank account user (user / exchange bank matching) will be proceed fast.

※ For ② · ③ case detailed plan including administrative guidance will be prepared after legal review

2. Stop financial service on bad crypto exchanges ( 2018 Jan)

• Stop providing financial services on bad abusive crypto currency exchange
• Consider suspension of financial service on exchanges that are violating consumer laws by reviewing it with FTC and other government organizations.
  -Notify banks to stop their services on exchanges that do not comply with the policies on purchasing, collateral acquisition, or prohibiting equity investment.

3. Enhancing Bank's Anti money laundering obligations

• Strengthen bank's anti- money laundering obligation on crypto currency exchanges.

Until the real identity trading on crypto currency system is not established on exchanges,
(1). In order to strengthen the identification exchanges for customers
(2). Monitoring on suspicious transactions will be strengthen (official publication will be held on 2018. Jan)

• ① (customer type) Minors and low income earners frequent transactions ,
  ② (Cash transaction) After transferring the customer's fiat to the account, transfer to the virtual currency
  exchange,
  ③ (Distributed Transactions) After receiving funds from many individuals, transferring it to the crypto
  currency exchange

ㅇ If a transaction on a crypto currency exchange is reported as a suspicious transaction,
if focus analysis shows that the source of funding is unclear or that money laundering is suspected
will actively provide data to law enforcement agencies such as the National Tax Service.

II. Concentration on Crypto currency related crime

Korea prosecution and police have promptly responded to new fraud and crimes related crypto currency by investigation. they have arrested total of 18 people involving sales of crypto currency fraud.

They will continue to conduct their investigation on crypto currency related crimes in the future. Intensive investigation and checkings on crypto currency trading, and brokering process will be conducted. It is policy to respond to the strictest principle such as the highest sentence of the court.

In addition on 2018 concentrated and intensive enforcement on crypto currency related crime will be established. Will continue the plan to decrease the crypto related crime.

• 2018 major investigation targets:
  ① Fundraising on multi level fraud by crypto currency.
  ② fraudulent investment in crypto currency mining,
  ③ Violation of the Foreign Exchange Transactions Act with crypto currency,
  ④ Concealment of criminal money such as money laundering through crypto currency transactions,
  ⑤ Illegal activities of exchanges, etc

-Ministry of commerce has checked current status of Chinese currency exchange district(Seoul Dae Lim 12.14)

• and now analyzing the foreign exchange transactions, and immigration performance of money changer for illegal foreign exchange.
• Gathering information on money changers whom had intensive amount of operational status.

We are investigating illegal foreign exchange transactions on 4 exchange companies, and investigating on high cost money exchangers, frequent crypto currency traders, and ETC. If there to be found any violence discovered investigation will be executed.

III. strengthening regulations on crypto currency online ads.

• Telecommunication and communication commision has told crypto business will self regulate them to prevent the indiscriminate advertisements on online ads.

The Fair Trade Commision is reviewing the use of unfair terms ** that is submitted by four major crypto currency exchanges( 2017. October ~ ) and expand investigation of all available crypto currency exchanges.

• Top leading companies in Korea such as BTCKorea.com, BITHUMB, COIN IN ONE, KORBIT CO, COIN PLUG CO.
  ** Discretionary withdrawal limit, vendor disclaimer, termination clause, etc

IV. Review of all measures including closing crypto currency exchange

• The government is going to look at the situation of crypto currency and speculative investments spreads, and will take act to resolute promptly and appropriately in accordance with the situation
• Ministry of Justice has proposed the establishment of special law for closing the crypto currency exchange and will review all the possible measures, including the exchanges.
• The government will take a firm stand on crypto currency speculation investments, but will continue to pursue the development of infrastructure technologies on block chain technology.