Earlier today, as South Korean mainstream media outlet Hankyoreh reported, the South Korean government’s planned regulations around bitcoin and the cryptocurrency market have been leaked.
- Prevent unaccredited investors from dealing with losses through highly volatile cryptocurrencies.
- Prevent strictly regulated cryptocurrency exchanges from operating as speculative platforms for unaccredited investors.
- Request banks and exchanges to ensure underaged investors and foreigners cannot open trading accounts on cryptocurrency exchanges.
- Temporarily suspend institutional investors and retail investors from investing in cryptocurrencies.
Regulations Focused on Volatility and Investor Protection
Contrary to many reports that were released this week, the South Korean government is not banning or cracking down on cryptocurrency trading. It has directly refuted those claims with the newly introduced regulations.
As CCN previously reported, the South Korean government was hesitant in imposing cryptocurrency-related regulatory frameworks over the past 12 months because it believed strict regulations would further legitimize, stabilize, and validate the local cryptocurrency market.
But, the South Korean government has started to rush the imposition of regulations for the local cryptocurrency market because of its sheer rate of growth. The regulations that were leaked earlier today were formed on Wednesday, during the emergency meeting the South Korean government had held.