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Updated: South Korea Clarifies Position After Reports of Possible Ban on All Crypto Transactions "On Monday, Financial Services Commission (FSC) Chairman Choi

Updated: South Korea Clarifies Position After Reports of Possible Ban on All Crypto Transactions "On Monday, Financial Services Commission (FSC) Chairman Choi Jong-ku clarified to reporters at a luncheon meeting that “the FSC is mapping out measures to restrict [cryptocurrency] transactions to some extent,” which he did admit include “an all-out ban,” Yonhap reported. “The restriction is aimed at minimizing side effects of bitcoin transactions and reducing speculative investment,” the news outlet added. Choi was then quoted by Asia Economy: We are discussing to what extent the government will regulate the trade, including the prohibition of trade. The chairman noted that the Ministry of Justice is currently reviewing measures to regulate cryptocurrencies. News.Bitcoin.com reported last week on this ministry being put in charge of a new Virtual Currency Task Force in order to “set up and implement the regulatory measures through consultation between the related ministries.” And also "It is expected that the government measures related to virtual currency will not be a one-sided regulation that prohibits virtual currency trading altogether, but a regulation that limits investment amount and investment qualification." https://news.bitcoin.com/south-korea-reports-ban-all-crypto-transactions/ https://news.bitcoin.com/south-korea-reports-ban-all-crypto-...

seibelj 9y ago
Thank goodness it’s impossible to ban crypto! Everyone in SK withdraw from the exchanges before they seize it!
- lucozade 9y ago
  > Thank goodness it’s impossible to ban crypto! No it's not. It may be hard to prevent all SK citizens from using cryptocurrencies as SK is a reasonably open society, but it would be straightforward to ban their use.
  - noarchy 9y ago
    A ban won't stop crypto any more than it stops illegal drugs, prostitution, etc. That said, there would be an effect on the crypto markets if a handful of major nations took action. So the question I have would be: will they aim for the taxes (presumably allowing crypto trading), or for an outright ban?
    - kazagistar 9y ago
      Sure, but unlike drugs or prostitution, aggressive police action doesn't harm any underprivileged classes, but rather a bunch of affluent tax evaders.
      - mtgx 9y ago
        Do you think most people owning cryptocurrencies are affluent tax evaders?
        pjc50 9y ago
        Well, they are now the price has shot up. Although this does remind us that "affluent" and "liquid" are not the same thing and that capital gains tax usually requires realising gains to be a taxable event.
        QAPereo 9y ago
        The 1000 or so majority owners probably are.
        WJW 9y ago
        Yes? It's certainly not the people struggling to buy food if that's what you are implying.
        noarchy 9y ago
        They may be affluent, particularly when compared to people struggling to buy food. That doesn't make them tax evaders. Though it should be added that the tax situation regarding crypotcurrencies isn't clear in every country.
        neuro_imager 9y ago
        Its ironic that the same people who keep saying cryptocurrency has no underlying value, that its just a speculative bubble, are saying that profits from its increase in price should be aggressively taxed.
- pjc50 9y ago
  SK has quite a "policeable" internet; for a while they required use of real names, although that has ended. https://thenextweb.com/asia/2012/08/23/south-korea-scraps-law-requiring-use-real-names-online/ https://thenextweb.com/asia/2012/08/23/south-korea-scraps-la...
- yongjik 9y ago
  > Everyone in SK withdraw from the exchanges before they seize it! Pick 100 random Koreans who traded in any cryptocurrency in the past 30 days, and I guarantee that 95 of them will never figure out how to store their coins in their hard drive even if someone held a gun to their heads. You don't have to bust doors to seize cryptocoins. Just make its usage sufficiently "socially unacceptable", and people will find it's not worth the hassle. Sure, some determined people will keep using them, but they are not what the government is worried about. The government is worried about all those average Kims and Parks who threw their life savings into $(some coin nobody heard about), because when the inevitable hits these people and their families may lose jobs, career, and livelihood.
adsfasdf2332 9y ago
haha. A ban is not going to happen when their neighbor Japan has legitimized cryptocurrencies and they risk being left behind in a possible economic shift. Keep dreaming though!

seibelj 9y ago

Thank goodness it’s impossible to ban crypto! Everyone in SK withdraw from the exchanges before they seize it!

lucozade 9y ago
> Thank goodness it’s impossible to ban crypto! No it's not. It may be hard to prevent all SK citizens from using cryptocurrencies as SK is a reasonably open society, but it would be straightforward to ban their use.
- noarchy 9y ago
  A ban won't stop crypto any more than it stops illegal drugs, prostitution, etc. That said, there would be an effect on the crypto markets if a handful of major nations took action. So the question I have would be: will they aim for the taxes (presumably allowing crypto trading), or for an outright ban?
  - kazagistar 9y ago
    Sure, but unlike drugs or prostitution, aggressive police action doesn't harm any underprivileged classes, but rather a bunch of affluent tax evaders.
    - mtgx 9y ago
      Do you think most people owning cryptocurrencies are affluent tax evaders?
      - pjc50 9y ago
        Well, they are now the price has shot up. Although this does remind us that "affluent" and "liquid" are not the same thing and that capital gains tax usually requires realising gains to be a taxable event.
      - QAPereo 9y ago
        The 1000 or so majority owners probably are.
      - WJW 9y ago
        Yes? It's certainly not the people struggling to buy food if that's what you are implying.
        noarchy 9y ago
        They may be affluent, particularly when compared to people struggling to buy food. That doesn't make them tax evaders. Though it should be added that the tax situation regarding crypotcurrencies isn't clear in every country.
        neuro_imager 9y ago
        Its ironic that the same people who keep saying cryptocurrency has no underlying value, that its just a speculative bubble, are saying that profits from its increase in price should be aggressively taxed.
pjc50 9y ago
SK has quite a "policeable" internet; for a while they required use of real names, although that has ended. https://thenextweb.com/asia/2012/08/23/south-korea-scraps-law-requiring-use-real-names-online/ https://thenextweb.com/asia/2012/08/23/south-korea-scraps-la...
yongjik 9y ago
> Everyone in SK withdraw from the exchanges before they seize it! Pick 100 random Koreans who traded in any cryptocurrency in the past 30 days, and I guarantee that 95 of them will never figure out how to store their coins in their hard drive even if someone held a gun to their heads. You don't have to bust doors to seize cryptocoins. Just make its usage sufficiently "socially unacceptable", and people will find it's not worth the hassle. Sure, some determined people will keep using them, but they are not what the government is worried about. The government is worried about all those average Kims and Parks who threw their life savings into $(some coin nobody heard about), because when the inevitable hits these people and their families may lose jobs, career, and livelihood.

adsfasdf2332 9y ago

haha. A ban is not going to happen when their neighbor Japan has legitimized cryptocurrencies and they risk being left behind in a possible economic shift. Keep dreaming though!