Reuters reported that South Korea’s government is balancing in with new rules on the country’s cryptocurrency trading market which is constantly growing in the world.
“The government had warned several times that virtual coins cannot play a role as actual currency and could result in high losses due to excessive volatility.”
The government’s statement also mentioned premiums in prices of cryptocurrencies traded on South Korean investors are playing up to 12% and 16% in premiums for trading Ripple and Monero respectively, because of the lack of supply in the market that is seeing soaring demand among retail investors for the cryptocurrencies.
The government statement described:
“Officials share the view that virtual currency trading is overheating irrationally … and we can no longer overlook this abnormal speculative situation.”
New Laws to Allow Regulators Shut Down Exchanges
The new restrictive curbs will reportedly include a ban on opening anonymous cryptocurrency accounts for cracking down on money laundering and financial fraud.
The statement reported:
“We will…resolutely respond to such crimes by slapping maximum sentences possible on offenders, leave all policy options open, including the closure of a cryptocurrency exchange when deemed necessary.”
New laws will present the regulators with the authority to shut the cryptocurrency exchanges if required. In the beginning of this month, the justice ministry prosecutor in charge of cryptocurrency-related crimes declared the measures is the protect retail investors from the potential scams.
The official’s statement described:
“We do not rule out an option that bans trading of [all] cryptocurrencies. We acknowledge many problems stemming from the trade and are studying how to control them.”
However, all anonymous traders’ accounts currently in use will be closed next month.