The South Korean financial authority reported the plan in a press release .According to the regulator, cryptocurrencies and their trade are mainly used to recycle criminal money.This is why the government is considering the possibility of closing all national cryptocurrencies in order to “minimize” the risks of cryptocurrencies. In addition to fraud, the regulator also mentions stock market hacks and “irrationally overheated speculation” on prices. Park Sang-ki, the South Korean justice minister, is also “very worried” about cryptocurrencies. He claims that digital coins are used in particular for “illegal practices such as money laundering, fraud and fraud”.South Korea: important market
South Korea is important for the global cryptography market: many digital coins are exchanged and there are also many different exchanges. Bitcoin has plummeted between $ 15,000 ($ 12,600) and about $ 13,000 per currency, after which the price has stabilized slightly to $ 13,700.
According to Sang-ki, a bill is being drafted that prohibits the trade in cryptocurrencies through national exchanges. It is not known whether this means that South Koreans are no longer allowed to use foreign trade fairs. South Korea has one of the largest encrypted: Bithumb, which was hacked last year.
The bill comes after the South Korean FIOD has invaded several national crypts for alleged tax evasion. The national assembly, the legislative body of the country, still has to agree with the bill. This process can take months or sometimes years.
Some analysts think government plans will make the digital currency even more valuable in South Korea. By limiting access to cryptocurrencies, they become scarcer and demand can rise further, says Moon Hong-chul, DB Financial Investment analyst.