Amidst all the chaos, there seems to be a voice of reason in the cryptomarkets in the government of South Korea. A representative of the Fair Trade Commission in South Korea had some exciting things to say on the matter of cryptocurrencies, exchanges and the ecosystem in general.
The government of South Korea has been on a warpath lately as they’ve caused a great deal of fear, uncertainty, and doubt in the cryptocurrency ecosystem, by their latest moves in how they have dealt with cryptocurrency exchanges, age impositions, and minimization of anonymous accounts. Surprising events included the government of South Korea calling for collaboration with China and other countries on the matter of Bitcoin and other cryptocurrencies. Also, there have also been different fears that were sparked by the banning of exchanges and much more.
All of these events seemed to have taken place in a flash, it all happened over the course of December of last year and this month.
Korea Fair Trade Commission
The KFTC is an important governmental organization in the country, and the KFTC, according to their official website, is a ministerial-level central administrative organization under the authority the Prime Minister which also Functions as a quasi-judiciary body.
The activities of the organization are to promote competition, strengthen consumers rights, secure a competitive environment for SMEs and to restrain concentration of economic power.
In regards to consumers rights, the KFTC seeks to “protect consumers from unfair adhesion contracts by correcting those that put consumers at a gross disadvantage and by distributing standard adhesion contracts. We also help consumers to make informed choices by correcting false and misleading labeling or advertisements and mandating disclosure of information that is essential to consumers’ decision-making. We prevent specific damages, which may occur in certain types of transactions, – i.e., installment transactions, door-to-door sales, electronic commerce, etc.”
The chairman may be seeking to abide this aspect as he expresses his concerns.
The Chairman of the KFTC has gone on record to announce that it doesn’t make any sense to close down the virtual currency exchanges. Instead, he’s said that it makes more sense to look into placing regulations on the growing sector.
Kim Sang- Joo, the chairman of KFTC, was recently interviewed on a local Radio station and he commented further in the interview that it isn’t realistically possible to aim for closing down the virtual currency exchanges. He also stated that, at the present moment, the law does not allow departments of the government like the Justice Ministry to shutter their digital currency exchanges.
KFTC Chairman responding to Justice Ministry
These remarks by this Chairman are due to the statements made by the Justice Ministry which stated they were in the process of introducing legislation which would render cryptocurrency exchange transactions to be illegal. Banning these transactions would have ultimately rendered these virtual asset exchanges useless. These statements caused a significant backlash from the people and the government backtracked further. These events eventually led the members of the current South Korean President’s office state that nothing of the sort would be done shortly.
Kim Sang-Joo is not the only one who opposes extreme measures in the cryptocurrency market, the country’s finance regulator is also in opposition to fierce restrictions.
An official from the Finance Ministry commented:
“From the viewpoint of an economist, it is not a fair and transparent decision to outright ban economic activity. Whether it is excessive speculation or not, the gain or the loss is the responsibility of the investor.”
Government Insider Trading
Meanwhile, in other parts of South Korea, there is an investigation into government insider trading.
The Financial Supervisory Service in South Korea established that there were employees of the government that did invest in cryptocurrencies and were able to sell them before the FUD announcements made by the government.
A local news outlet noted that a government official stated:
“There is intelligence that FSS staff sold all of the virtual currency that they invested in just prior to the announcement of the government’s measures.”
They will be conducting an investigation and are surprised by the act, they’ve stated:
“It is a tremendous thing for civil servants to influence the market and gain profits.”