South Korea Update: Fair Trade Chief Claims Government Lack the Authority to Shut Down Crypto Exchanges
Another major player has their say
The Chairman of South Korea’s Fair Trade Commission, Kim Sang-Joo, has said on a radio interview that it isn’t possible for the government to shut down crypto exchanges in South Korea. He was reported as having said that the government doesn’t have the authority to do so, in an interview with news channel JoongAng, earlier this week.
More Fuel to the Debate
Sang-Joo’s view is that imposing limits on economic activity would not be legal, or indeed fair. This is clearly a viewpoint that is supported by the general public, as the petition over a proposed ban quickly reached over 215,000 signatures, thereby compelling the government to respond officially.
From an economist’s point of view, it is not a fair or transparent decision to ban economic activity outright. Whether it is excessive speculation or not, the loss or gain is the responsibility of the investor.
Kim Sang-Joo (translated)
However, the ongoing debate over potential regulations in South Korea has seen a great many twists and turns. For a while, it seemed as if the government were going to shut down all exchanges, although this was later revealed to have been mis-reported. One thing is for sure though; the proposal to ban anonymous exchange accounts has gone ahead, and exchanges risk heavy fines for non-compliance. In addition, anonymous accounts have deadlines by which they must be converted to verified accounts, or investors could lose their holdings.
This latest regulation follows the ban on exchange accounts for under-19s, and there is still speculation as to whether the government’s endgame really is to shut down all exchanges, or move to a fully-regulated, taxed model as other countries have done of late.
Do you think that the South Korean government will shut down all exchanges after all? Let us know in the comments section below!