South Korean government clarifies: No Bitcoin ban

The South Korean government clarified that there will be no cryptocurrency trading ban in the near future . In a statement, a South Korean government spokesperson said that the South Korean government will continue to crack down on anonymous cryptocurrency trading accounts and will punish market manipulation, money laundering and fraudulent transactions through joint investigations involving local law enforcement and financial institutions. Secondly, the cryptocurrency trading ban proposal proposed by Justice Minister Park Sang-ki is a proposal made by the Ministry of Justice on December 28 to control speculation in the cryptocurrency market.

This proposal will be discussed and revised by a working group involving the Ministry of Strategy and Finance, the Central Bank, the Fair Trade Commission and other institutions. Third, excessive speculation and fraud will have serious consequences. However, the government will support and even fund the development of blockchain technology.

The South Korean government's confirmation is a welcome relief for cryptocurrency enthusiasts. Bitcoin fell 12% after the news of the ban, while Ethereum fell 7.6%. Currently, the price of Bitcoin is stable at around $14,400. Both cryptocurrencies are popular in South Korea, with 20% of Bitcoin transactions initiated by Korean users, while more than 10% of Ethereum transactions are traded in Korean won.

Starting January 20, foreigners and underage investors will be banned from trading cryptocurrencies in the country, and by the end of the month, South Korean cryptocurrency exchanges are also expected to re-register new users and investors.