South Korea is planning to ban all cryptocurrencies

The South Korean Ministry of Justice is reportedly planning to ban trading of all cryptocurrencies including bitcoin.

The Nikkei published a report with quotes from the ministry official suggesting a complete ban on all cryptocurrency trading in South Korea. Currently, this is one of the world’s largest cryptocurrency trading markets.
This move is definitely going to meet resistance from other legislators including Korea’s finance ministry. This move is being considered in order to protect retail investors from potential scams, according to the official.

In clear statements on Monday, of Choi Jin-seok; a prosecutor at the Justice Ministry in charge of cryptocurrency; related crimes, as stating:

We do not rule out an option that bans trading of [all] cryptocurrencies. We acknowledge many problems stemming from the trade and are studying how to control them.

The hardline ban (if enforced), will take after China’s precedent in carrying out crippling measures to effectively shutter its local bitcoin industry. Korea has already followed China’s cue in enforcing a complete ban on initial coin offering (ICO) fundraising. Although regulators have since hinted at a softer regulatory approach that would reverse the ban.

The Justice Ministry’s plan “will almost certainly face resistance inside the government”. Pointing to multiple endeavors by Korean government ministries to regulate – in effect legalize – the tremendously popular cryptocurrency industry.

The move to regulate the local bitcoin industry began last year. With a promise to introduce regulations by the chief of Korea’s Financial Services Commission (FSC) – the country’s primary financial regulator.

FSC chairman Yim Jong-yong said at the time:

The government will push for the systemization of digital currency on a full scale in tandem with a global trend in the U.S., Japan and other countries.

A ban on cryptocurrency trading could take place, the Nikkei report cites sources within Korea’s Justice Ministry claiming that “many prosecutors are leaning towards considering cryptocurrencies themselves a scam” as they aren’t backed by a monetary authority or a government. Such a classification would give the Justice Ministry the legal go-ahead to apply Korea’s criminal code and effectively ban cryptocurrency trading.

If South Korea ban cryptocurrencies will this affect the whole world? What do you think? Leave us a comment below.