In a major relief to cryptocurrency users, the South Korean government has said that it will focus on enhancing the transparency of cryptocurrency exchanges, rather than imposing a complete ban, according to CoinDesk.
The head of the office for government policy coordination Hong Nam-ki on Wednesday revealed the government’s plans to bring transparency to domestic cryptocurrency exchanges. The comments come in response a petition against the recent crackdown on cryptocurrency exchanges in the country. The petition gathered more than 280,000 signatures.
"At the moment, the government places a priority on transparency of virtual currency transactions within the framework of current law. Undesirable things occurred during the check-up process, such as money laundering through an unconfirmed virtual account or, in some cases, depositing customer money in the accounts of employees in the business," Hong said in an official statement.
Last month, reports suggested that the South Korean government is planning to ban cryptocurrency trading in the country and the justice ministry was drafting a bill on these lines. Hong explained that while the country’s prime minister recently suggested that a complete ban on cryptocurrencies is one of the options, the government is currently not considering the most extreme scenario.
The government has already been making efforts to make this sector more transparent. It recently imposed a ban on anonymous cryptocurrency trading in South Korea, which went into effect on January 30.
More recently, the Korean Customs Service (KCS) said that it is investigating the use of digital currencies in illegal foreign exchange business in the country. It estimated that a total of 637.5 billion won (approximately $600 million at current exchange rate) have been exchanged illegally in foreign currencies till date, which includes transactions involving cryptocurrencies.
Hong also expressed the government’s plans to tap blockchain potential saying, “We will do our best to improve technology competitiveness by developing technology for the blockchain or applying to the industry. In particular, as part of this, the government plans to make a 'blockchain industrial development basic plan' during the first half of the year."
