South Korean policymakers joined the worldwide chorus of virtual-coin critics on Thursday, saying Seoul is considering closing down domestic virtual currency exchanges because the new breed of market exposes users to speculative hysteria and crime.
The country’s powerful stance comes as policymakers from the US to Germany struggle to come back up with stricter regulation against concealment and alternative crimes.
Responding to queries in parliament, South Korea’s chief of the money Services Commission said: “(The government) is considering each move down all native virtual currency exchanges or simply those WHO are violating the law.”
Separately, Bank of Korea Governor Lee Ju-yeol told a press conference that “cryptocurrency isn't a legal currency and isn't getting used per se as of currently.”
Regulators around the world square measure still debating a way to address risks display by cryptocurrencies, as bitcoin, the world’s preferred virtual currency, soared quite one,700 p.c last year.
Prices have plummeted since the Republic of Korea declared last week it should ban domestic cryptocurrency exchanges. On Wed, bitcoin fell eighteen p.c.
Hong Nam-ki, minister of the workplace for presidency policy co-ordination, aforementioned that opinions on cryptocurrency commerce square measure sharply divided among the govt, however, vowed to create a call on rules throughout Thursday’s parliamentary session.
South Korea’s justice minister aforementioned last week the ministry was getting ready a bill to ban cryptocurrency commerce, that sent bitcoin costs sharply lower and threw the market into turmoil.
The shift toward tighter regulation sparked a robust reaction from several South Koreans, thousands of whom signed a petition on the website of the presidential Blue House to prevent a ban on cryptocurrency commerce.
The BOK governor aforementioned the financial organisation had begun wanting into the market’s impact on the economy.
“We have started viewing virtual currency from a long-run position, as central banks may begin issuance digital currencies within the future. this type of analysis has begun at the Bank of International Settlements and that we square measure a part of that analysis.”