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Report: South Korea Could Decide This Week on Crypto Exchange Regulation

Wolfie Zhao
South Korean regulators, whose decisions have shaken cryptocurrency markets in the past, are reportedly cracking down on exchanges' contract terms.

South Korea could make a decision on Thursday over its stance on cryptocurrency exchange regulation, according to a report by Reuters.

Responding to a parliament member at the national policy committee meeting today, Choi Jong-ku, head of South Korea's Financial Services Commission, explained how such regulation may play out, reportedly saying:

“(The government) is considering both shutting down all local virtual currency exchanges or just the ones who have been violating the law.”

The comment indicates the government is moving to clear the recent confusion around cryptocurrency regulation in South Korea, mainly created by conflicting comments issued by different government bodies.

As reported before, on Jan. 11, the South Korean Ministry of Justice reportedly confirmed a plan to shut down all cryptocurrency exchanges. Yet soon the South Korea's Presidential Office commented that such a policy has not been finalized. As reported by CoinDesk previously, the unclear situation has also brought backlash from local residents and politicians.

According to the report, Hong Nam-ki, minister of the office for government policy coordination, said while government officials still hold different opinions over the issue, the meeting today expects to reach a decision on a cryptocurrency exchange regulation.

Elsewhere in the country today, South Korea's central bank made a comment that may signal a different approach on how the country may make use of cryptocurrency and its underlying technology.

According to Reuters, Lee Ju-yeol, governor of Bank of Korea said in a news conference on Thursday that while cryptocurrency so far is not a legal currency, the bank has been involved in researching a central bank-issued cryptocurrency.

"We have started looking at virtual currency from a long-term standpoint, as central banks could start issuing digital currencies in the future. This sort of research has begun at the Bank of International Settlements and we are part of that research," he said.

South Korea flag image via CoinDesk's archive.

Editor's Note: This article and its headline have been updated for clarity.

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