Given the rapidly growing number of fraudulent cryptocurrency exchanges, platforms and activities, the government of South Korea immediately moved to regulating cryptocurrency exchange and hacking of fraudulent transactions.
"Cryptocurrency speculation has been irrationally overheated in Korea", the government said in the statement, which comes little more than a week after the bankruptcy filing of one South Korean exchange.
Also, the government will restrict cryptocurrency advertisements, and the justice ministry even suggested shutting down cryptocurrency exchanges, said Hong Nam-ki, minister of the Office for Government Policy Coordination.More news: Ariel Investments LLC Has Trimmed Its Holding in Laboratory Corp. Of America Holdings (LH) by $20.52 Million
Under the measure, only real-name bank accounts and matching accounts at virtual currency exchanges can be used for deposits and withdrawals, while the issuance of new virtual accounts to cryptocurrency exchanges will be banned, Hong said.
The latest moves came as the South Korean government announced it would implementing new rules in a bid to regulate trade in the digital currency in the country.
South Korea has been ground zero for a global surge in interest in bitcoin and other cryptocurrencies as prices surged this year, prompting the nation's prime minister to worry over the impact on Korean youth.More news: AFLAC Incorporated (AFL) Shares Bought by Piedmont Investment Advisors LLC
"We will. resolutely respond to such crimes by slapping maximum sentences possible on offenders", the government said, vowing to "leave all policy options open, including closure of a cryptocurrency exchange when deemed necessary".
He also drew the line at the possibility of establishing an official cryptocurrency exchange in Asia's fourth-largest economy.More news: Ex-Dividend Reminder: Potash Corp of Saskatchewan, International Flavors & Fragrances and Agrium