The South Korean government is one of the staunchest combatants on the cryptocurrency front with multiple restrictions being imposed alongside some innovative methods of stemming the crypto tide.
A new announcement from South Korea’s Financial Services Commission states that investors will be required to convert their virtual bank accounts to real-name bank accounts to continue trading. Deposits and withdrawals will be allowed only between real-name bank accounts and matching crypto-exchange accounts within the same bank.
It is estimated that South Korea accounts for 20% of all Bitcoin trades worldwide. The Korean government has been trying to restrict crypto-trading recently, raiding major exchanges and floating ideas such as bans on domestic trading. The South Korean government also stated that it is planning to collect corporate and income taxes at a collective rate of 24.2 percent from local cryptocurrency exchanges starting from 2018.
On January 15, in a public press conference, South Korea President Moon Jae-in’s executive office Blue House spokesperson Jeong Ki-joon, emphasized that there will be no cryptocurrency trading ban in the near future. In an official announcement, spokesperson Jeong noted that the cryptocurrency regulation task force created by the government will improve and alter the original proposal by the Justice Ministry to ban cryptocurrency trading and introduce practical regulations to foster the cryptocurrency market.
The ban on foreigners and underaged investors from trading cryptocurrencies is expected to be implemented on January 20.
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