December 23, 2024

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[THE INVESTOR] The Korean authorities are drafting a bill that will deem cryptocurrency trading an illegal practice, but with room to allow it if it meets certain criteria, according to news reports on Dec. 12.

A day after saying it may rule out bitcoin trade altogether, the Korean government reportedly said it out of consideration for the growing trading volume, it would allow some cryptocurrency exchanges to trade if they have in place proper identity verification processes, anti-money laundering systems and other security measures. 

The comments come as the authorities are soon planning to submit a bill to parliamentary defining cryptocurrency trading as “fundraising business without permission,” which is regulated under current law that is subject to up to five years in prison or 50 million won (US$46,000) in fines.

The recently launched state-run cryptocurrency task force will convene a meeting on Dec. 15 to discuss the bill and measures to regulate cryptocurrency trading here.

Frenzied demand for bitcoins has pushed prices up to new-highs in Korea. The authorities have voiced concerns that unregulated cryptocurrency speculation could cause great damage to investors, including minors.

By Ahn Sung-mi (sahn@heraldcorp.com)