Just weeks after it banned cryptocurrency transactions, South Korea's financial regulator said the government will now support them.
In direct contrast to his government's previous position in wanting to close down local virtual currency exchanges, Choe Heung-sik, governor of South Korea's integrated financial regulator, has back-pedalled saying the government was now willing to support «normal transactions» of cryptocurrencies, «Yonhap» reports.
The South Korean government has been among the most proactive in cracking down on crypto's in an effort to curb the market from overheating. Officials in Seoul stopped the use of anonymous virtual accounts last year as part of their ongoing efforts to constrain speculation in virtual currencies.
Ban or Embrace
The Financial Services Commission in Seoul further tightened the noose when they banned initial coin offerings, saying trading of cryptocurrencies needed to be tightly controlled.
Cryptocurrency operators viewed Choe’s comments as a positive step for the industry’s plans for self-regulation. Near neighbour Japan has taken a pro-active approach to crypto regulation ordering companies that deal with cryptocurrencies to become licensed by the financial regulator.
