The South Korean government said on Monday that it will take strong measure to curb digital currency speculation and their use in illegal activities, but will encourage the development of underlying blockchain technology.
The Office for Government Policy Coordination has issued an official statement on the proposed ban on digital currency exchanges today. Last week, Justice Minister Park Sang-ki said that the Ministry of Justice is preparing a bill to impose a ban on virtual currency trading in the country.
"The proposed shutdown of exchanges that the justice minister recently mentioned is one of the measures suggested by the justice ministry to curb speculation. A government wide decision will be made in the future after sufficient consultation and coordination of opinions," the office said in a statement (as translated by The Korea Herald).
However, a recent survey shows that people are not too happy with the government’s efforts. In a survey conducted by online job portal Incruit, nearly 35 percent of South Koreans have opposed the government's efforts to regulate cryptocurrency in the country, Yonhap reported. The respondents believe that the government's move to regulate cryptocurrency is against the "flow of the high-tech industry."
“We will respond strongly to excessive virtual currency speculation and illegal activities, but we will support and nurture R & D investment for the blockchain as an underlying technology,” the office added. "As virtual currency is not legal tender and no one guarantees its value, its prices can fluctuate by a large margin ... and cause big losses. Therefore, virtual currency mining, investment and trading should be done prudently under one's own responsibility."
