Korea Clamping Down on Cryptocurrency

December 14, 2017 Taxation in South Korea

litecoinSEOUL – Korea’s booming cryptocurrency market may come to a halt due to the government’s planned restrictions.

The government of South Korea has announced that it will take active measure to help quell dangerous speculation and abuse of cryptocurrencies.

Over the last week the international prices for cryptocurrencies have seen wild swings, which have been magnified in South Korea due to the popularity of such technology in the country.

During the course of a few weeks, the price of Bitcoin, the most popular coin in South Korea, has swung from KRW 14 million to KRW 25 million per coin.

The government has now announced that it will restrict access to cryptocurrencies and cryptocurrency based accounts in Korea, specifically banning minors and non-residents from accessing coins in South Korea.

Further, banks and other financial institutes will be prohibited from owning coins or owning derivative products of cryptocurrencies.

Stricter KYC and DD requirements will also be imposed on the ownership and purchase of cryptocurrencies by individuals.

However, despite the restrictive measures, the government has stated that it does not wish to ban the outright speculation, investment and use of cryptocurrencies, as it does not wish to stifle growth in the fintech industry.