South Korea’s confusion about cryptocurrency exchanges having support from local banks has finally been cleared by the Financial Services Commission (FSC) of South Korea.
Financial Services Commission Commissioner, Choi Jong-Ku said, “There exists no issue in banks providing virtual bank accounts to cryptocurrency exchanges. If digital asset trading platforms have KYC and AML systems in place, there is no problem in issuing virtual bank accounts to exchanges.”
The South Korean cryptocurrency community has been confused ever since the beginning of 2018 when the government of South Korea prevented banks from working with cryptocurrency exchanges. The main reason for the lack of trust by the South Korean government towards cryptocurrency was the possibility of laundering money.
The confirmation by the FSC has put a smile back on the South Korea Blockchain Association. The South Korea Blockchain Association represents all types of cryptocurrency exchanges in the local market.
South Korean enthusiasts will now hope that country’s local ban on Initial Coin Offerings will also be repealed when the government decides in November 2018. The ICO ban has been in force since September 2017.
Choi’s remarks come at a pivotal time for the Korean crypto sector, which awaits the possible announcement of a government decision in November over whether or not to repeal the country’s local ban on Initial Coin Offerings (ICOs), which has been in force since September 2017.
South Korea consists of many cryptocurrency enthusiasts. The following statistics prove how vital the South Korean market is for cryptocurrency as a whole-
- The Korean won was the second most used fiat currency after the US Dollar to trade in major cryptocurrencies till January 11th, 2018.
- The Korean won accounted for more than 10% of trades in Bitcoin for much of the second half of 2017.
- Ethereum was mostly traded in Korean won till late 2017.
On January 11th when the Justice Minister of South Korea reiterated his stance on a cryptocurrency exchange ban Bitcoin has fallen by more than 12 percent. The Bitcoin market recovered as soon as a spokesman for President Moon-Jae-in said nothing had been finalized. This evidence points out that South Korea now allowing cryptocurrency exchanges to operate freely will benefit the world’s cryptocurrency market.
Image Credit – Flickr
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