The Ministry of Justice in South Korea is planning to do away with all cryptocurrencies including Bitcoin. A report was published by the ministry suggesting that they would ban all cryptocurrencies in the country. The move is aimed at protecting retailers from scams based on one of the Ministry’s official. This move is however expected to face huge opposition from other ministries in the country including the ministry of finance.
In the ministry statement, the ministry stated that crime-related activities had been reported in the Cryptocurrency field. In the report: “We are not ruling out options for banning all cryptocurrencies. We know many problems that are emerging from the cryptocurrency trading, and we are studying them and the possibility of controlling them.”
If the view of the ministry is taking the country will have followed China.
China took tough measure to ban the trade of Bitcoin in the country. South Korea seems to be following this steps of China after they banned all Initial Coin Offerings (ICO). The ban has been hard for it’s understood that the country is softening its sand and instead of the ban they would put in place regulatory measures then reverse the ban.
Control the currency instead of banning it
The main reason why the ministry idea will be opposed is that the government had plotted regulatory measures and then Legalize Bitcoin. In fact, a framework is already being worked on by Korea’s National Tax Service to enforce income tax on all virtual currencies. More to that Park Yong-Jin a politician is also drafting draft including revisions of the existing legislation to ensure regulation of cryptocurrencies. The effort of the politician is hugely taking shape in the country.
Last year Korea’s Financial Services Commission had promised to come up with regulations to control the local Bitcoin. According to the Chairman of the Commission Yim Jong-Yong: “Digital currencies will be systemized by the government. This will be aimed at regulating the currencies like in US and Japan.”
According to the Nikkei report from the Ministry of Justice, most of the prosecutors are moving towards the consideration of Cryptocurrencies as a scam. They consider them as a scam because they are not supported by monetary authorities or even the government. If such explanation was to be considered legit, then the ministry would be given the go-ahead to use Koreas Criminal code, and through this, they would easily ban the cryptocurrency in South Korea.
In conclusion banning of cryptocurrency is not the answer to illegal activities. In fact, there is no proven case of illegal activities taking place in either Bitcoin or even Ethereum space. Banning Cryptocurrency would negatively affect the growing market and could even lead to their prices coming down.