In stark contrast to the reports published by the mainstream media such as Reuters, CNBC, and Bloomberg, South Korea will not shut down crypto exchanges. According to Kim Sang-jo, chairman of the South Korean Fair Trade Commission (KFTC), closing crypto currency exchanges is impossible. He conveyed this message in a CBS radio interview.
The KFTC is currently investigating 13 crypto exchanges, including Bithumb, Korbit, and Coinone, for a possible violation of an e-commerce law. Other than that, there is no legislation which can be applied to close crypto currency exchanges, according to Kim Sang-jo. He further said that a violation of the electronic commerce laws cannot be the only reason to legally force the closure of crypto currency exchanges.
Kim Sang-Jo also stated that crypto currencies have emerged recently and there are no laws that can be applied by any of the government agencies to close crypto currency agencies. The KFTC chairman also pointed out that the overall investment made in crypto currencies is not stable enough to label it as speculation. He also cautioned investors that they are responsible for their own risks and asked them to voluntarily disclose crypto currency activities, until proper regulations are in place.
According to the Korean news site, Yonhap, the Financial Services Commission will seek to close down operations of crypto currency exchanges which are found to have involved in illegal activities.
Justice Minister Park Sang-ki said
“We have taken steps to calm the overheating within the framework of the current law.”
Therefore, under the current laws, shutting down any crypto currency exchange is not possible as long as they are not involved in illegal activities. The clarification is expected to put an end to the rinse and repeat of the FUD (Fear, Uncertainty, and doubt) scenario.