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South Korean Government Changes Stance on Cryptocurrency and Moves to Support It

Despite its recent threats to crack down on cryptocurrency trading and mining, the South Korean government has dialed back its statements and now seeks to support cryptocurrency instead.

Cryptocurrency regulations and illegal activities

Originally, South Korea intended to move to implement stricter rules and regulations on cryptocurrency activities back in January in an effort to cool off the fierceness of the country’s digital currency market. It also feared that the currency may potentially be used for illegal activities, including money laundering efforts.

This is what made the news of the government’s change of heart such a surprise, as Choe Heung-Sik, the Financial Supervisory Service chief of the nation, expressed that they would be working in backing the digital coin industry. This is part of their efforts to help further develop their country.

Full support of normal transactions

However, this is not to say that the country has thrown all regulations out the window, either. Anonymous trading accounts will continue to face blocks. Instead, the government will be in full support of what they refer to as normal transactions that use digital currencies, and there are plans to create a dedicated approval system to this market. The system may function as a means to grant legal licenses to digital currency trading and mining that follows the sanctioned regulations put in place.

Popularization of cryptocurrency

The government will also be working to encourage banking and financial institutions to develop ties with cryptocurrencies and engage in transactions based on this form of money. Many local banks in South Korea remain skeptical about this idea, but with government backing, may begin to lose their reluctance and take part in exchanges using this medium.