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Shutting Down Cryptocurrency trading is Illegal – South Korea’s FCA

The leading agency on consumer protection from South Korea has hoisted the enthusiastic confidence for Asian traders by holding its ground that the ban of virtual currencies is illegal.

In case there was any doubt the South Korean government is absolutely split on the idea of banning cryptocurrencies, one more state agency has added to the confusion by airing its opinion on the matter.

The prohibition of crypto-trading is illegal according to the Financial Consumer Agency:

“The government has yet to establish the legal grounds over related laws for consumer protection, in particular in the cryptocurrency market. Who is to blame for lots of negative news about the craze in the cryptocurrency market? It doesn’t make any sense that markets and investors should take responsibility,” THE FCA SAID.

The unit recommends that the President Moon Jae steps in and deviates the on-going train from entering any more escalating or confusion area.

However, an official statement from the President either condemning or endorsing digital currency trading has yet to been seen even that a petition asking out for his take on the matter did surpass 200k signatures.

The only institution to budge was the justice ministry, which insisted that it was banning cryptocurrencies until it was shot down by both the Office for Government Policy Coordination and the Residence of the President.

According to the agency – the FSC Financial Services Commission has take on the confusion that is taking place for a few weeks now:

“Financial Services Commission Chairman Choi Jong-ku showed his inability to take on the issue. Relevant government offices need to present a unified stance and clear message to the market along with measures over how to enable the digital currencies to transform the finance industry,”

If the stance that the agency holds up on the event does have strength and weight to be proven for the GOV of South Korea, this could mark the end of the talk about banning cryptos.

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Don’t panic – South Korea is NOT banning crypto

Mass confusion and a wave of panic selling has ensued during the Asian trading session this morning on reports that the South Korean government has banned crypto trading and raided exchanges. The Southeast Asian nation carries as much as 20% of the global trade so anything that happens there will have a ripple effect across the markets.

While it is true that government tax inspectors visited a number of the country’s major exchanges this week there was no clampdown and nothing has been shut down. Both Bithumb and Coinone were visited by police and tax officials who asked to see documentation and questioned bemused staff who told local media;

 “A few officials from the National Tax Service raided our office this week. Local police also have been investigating our company since last year, they think what we do is gambling,” 

Bithumb is the second largest exchange in the world with a daily trade volume exceeding $4 billion. The South Korean government is seeking more transparency in the burgeoning crypto market that has attracted everyone from housewives to students. According to local media Yonhap News the government is developing a system which seeks to ban the use of anonymous trading accounts. Under the measure, only real-name bank accounts and matching accounts at cryptocurrency exchanges can be used for deposits and withdrawals, while the issuance of new virtual accounts to cryptocurrency exchanges will be banned.

Some news agencies such as CNBC have completely misreported this as an outright ban;

“South Korea’s justice minister said that the country is preparing a bill that will ban all cryptocurrency trading”

This is incorrect; the ministry is trying to ban anonymous trading accounts and prevent money laundering. There is no ban on crypto currency in South Korea and exchanges are all operating as usual.

Naturally a panic selloff has ensued and all digital assets have fallen this morning. Bitcoin has taken a dive falling 25% from $17,500 to just over $14,000. Bitcoin Cash, Ethereum and Litecoin are also retracting however Ripple has taken the biggest hit with a 50% drop in less than a week. Fame is fleeting in crypto land, last week’s the talk of the town has slid from a high of $3.80 to $1.65 at the time of writing.

All other altoins are trading lower, many falling by double digit percentages. It is not the first time South Korea has flexed its muscles at crypto traders and it wont be the last. Panic selling is a sign of immaturity, but it is to be expected in a market that is barely a year old.

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Longest Running Bitcoin Exchange Marks the End of An Era – Shuts Down

BTCC – Bitcoin exchange has terminated its CNY trading platform under declared China ICO ban regulation – leaving the industry and giving an end to its services.

BTCC made the announcement on Twitter, noting that it had operated for a “world record of 2,305 days.” Indeed, the vast majority of bitcoin users likely cannot remember a time before BTCC. Throughout the world, exchanges rose, fell, and occasionally scammed their customers, but BTCC remained.

This is not a surprise as the actions by the officials towards ICO ban has been followed with a domestic bitcoin exchanges shut down to be done with instructions by regulators. On Sep 14, BTCC announced that it will be closing down two weeks later on Sep 30, being the first to take the step. On Sep 27 BTCC did not accept anymore deposits.

Although BTCC’s operations in mainland China are winding down, the company will continue to operate elsewhere. BTCC’s USD and DAX exchanges, as well as its mining pool and other company operations, will function as normal.

Despite BTCC’s historic status, not everyone was sorry to see the exchange go. As a New York Agreement (NYA) signatory, the company had incurred the ire of a significant segment of the bitcoin community, and tensions have increased as the proposed November date for the controversial SegWit2x hard fork approaches. Consequently, some social media users gloated at the exchange’s demise. Others expressed incredulity, believing thus-far unsubstantiated rumors that regulators will eventually license domestic bitcoin exchanges and allow them to resume trading.

Nevertheless, BTCC CEO Bobby Lee took to Twitter to commemorate the end of BTCC’s record-setting run:

“We started as China’s 1st bitcoin exchange. Back then, BTC price was just CNY ¥150,” he wrote. At present exchange rates, that is just $22.60, meaning that bitcoin has appreciated by more than 19,000% in the intervening years.

“Wish we could have bought some more,” Lee added.

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Bitcoin Ban is not Even Realistic – Major Newspaper Optimism

Leading Chinese Newspaper People did publish a writing relating to the recent “ban bitcoin rumors” commenting that it is not realistic nor feasible.

Officials and the state should only take note of virtual currencies potential to raise could-be moves in the domestic economy – added the author, Liu Xiaolei – Guanghua University professor:

“Given the decentralized p2p trading characteristics of cryptocurrencies such as Bitcoin, it is neither realistic nor feasible to ban Bitcoin.

If Bitcoin has no value in the real economy, but rather only the value as a speculative investment, then limiting the speculation will help funds from Bitcoin speculation to return to the real economy.”

It was written as part of a more expanded opinion about the banning of ICO’s that happened last week in China.

The news are inflicting the market in general even it is not government confirmed, but if it does Bitcoin to fiat exchanges functionality could be interrupted.

From Liu’s side of the table when it comes to exchanges the supervision and control when it comes to trading should be strengthen if it is required.

However when it comes to ICOs cautious should be echoed all around as warning releases from officials in a international scare are being given out.

These most recently included Canada, the UK and Hong Kong.

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