It seems another cryptocurrency shakeup will happen in South Korea. With exchanges imposing self-regulation, an interesting precedent is created. The government now wants to crack down on any illegal and unfair activity in this industry. This also means there will be no ban on cryptocurrencies whatsoever. It is another positive change to further legitimacy cryptocurrency in the country.
There is still a fair amount of illicit activity in the cryptocurrency industry. Addressing this problem will not be easy whatsoever. In South Korea, the government wants to focus on transparency for this industry first and foremost. Additionally, they want to remove the illicit activity from the equation altogether. It will not be an easy challenge, though. Taking firm action against entities conducting in illicit activity will yield some interesting results.
The Cryptocurrency Situation in South Korea
This new approach is the direct result of a petition sent to the government not that long ago. In this petition, over 280,000 residents of South Korea demand reasonable cryptocurrency regulation. It is certainly possible to regulate cryptocurrency companies without banning this form of money. South Korea seems to lean toward taking this approach as of right now. Whether or not this is due to the petition itself, remains to be seen.
All of this means we will see additional guidelines in the future. What that entails exactly, remains unknown for the time being. All options remain on the table, which can mean positive things are bound to happen in South Korea. The fact there will be no ban on this new form of money is by far the most important aspect. It is also worth noting the local government is a firm proponent of blockchain technology as well.
There are still a lot of different opinions among the government right now. With no unified front, the decision can easily swing either way. For now, we will have to wait and see what the future holds in this regard. It is possible South Korea will fully legitimize cryptocurrency, just like Japan did. At the same time, a harsh crackdown on cryptocurrency is still an option as well. Taxing virtual currencies seems to be another aspect worth considering as of right now. An interesting situation well worth keeping an eye on.