UPDATE: SOUTH KOREA BAN
Last night (US time) South Korea Ministry of Justice confirmed that it is continuing to draft its “cryptocurrency trading closure bill”. This bill has actually been underway since mid December.
The purpose of the bill is to prohibit underaged investors & foreigners from trading cryptocurrencies within the South Korean market.
Media outlets like CNBC reported that South Korean is planning to ban cryptocurrency trading, as we shared yesterday as it made the rounds.
It’s important to note that the bill would need to pass congress first before it can be taken into effect, that hasn’t happened yet.
It should also be noted that if they wanted to just ban trading, they would have already done it already (like China) instead of working toward providing a framework for a new regulatory environment.
The South Korean government is expected to implement some regulatory framework by January 20th. According to the Ministry of Finance, they intend to:
• Prevent unaccredited investors from suffering large losses in the volatility of the crypto market
• Require banks and exchanges to verify investors through some form of KYC (know your customer) process.
• Temporarily suspend institutional and retail investors from investing in crypto.
We expect to see more of this in 2018. Countries will attempt to regulate exchanges and get more transparency into trading. They will say its to protect customers, the reality is that it’s just to ensure they get their cut.
This is all a part of participating in this exciting new world. The best thing you can do is stay calm, consult with your own legal counsel, accountant, etc. to understand the laws of your country, and make informed decisions.