South Korean Regulators Aim to Develop & ‘Normalize’ Cryptocurrencies in U-Turn
South Korea is one of the largest cryptocurrency trading markets in the world, with Korean Won BTC trading pairs currently ranking 4th in the world by volume – 3rd if you discount USDT. Naturally, when rumors started flying around in January about South Korea banning cryptocurrency trading, the markets did not respond well.
However, shortly after it the government announced it had no intentions to ban crypto trading, but did have plans to introduce stricter regulations. It also then emerged that a lot of the FUD had been created by Korean officials caught insider trading! Now in a big u-turn, South Korean regulators have declared support for development and ‘normalization’ of cryptocurrencies, with FSS chief Choe Heung-sik stating:
“The whole world is now framing the outline (for cryptocurrency) and therefore (the government) should rather work more on normalization than increasing regulation,”
That said, it was also made clear that support would be given to ‘normal’ transactions, with regulators still opposed to anonymous transactions and exchanges that lack any form of KYC. As more governments around the world begin to realize the economic potential of blockchain technologies, it is possible more will follow suit by creating an environment that helps foster innovation, not hinder it.