South Korea gives cryptocurrencies the go-ahead. The South Korean Financial Supervisory Service (FSS) has announced this week that it will back cryptocurrency trading in the country. The organization will even encourage banks to perform transactions with exchanges.
This is according to FSS chief Choe Heung-sik who said that the move to support the crypto industry in South Korea, will grow and develop the country.
South Korea gives cryptocurrencies the go-ahead
Addressing delegates at a meeting, Choe said the country will only support the crypto industry “if normal transactions are made.” According to Yonhap, a Korean publication, this could mean that crypto trading would have to take place under know-your-customer (KYC) transparency.
Since last year, news reports of South Korea possibly banning Bitcoin and other cryptocurrency trading activities caused havoc in the market. The price of Bitcoin would react negatively during such times.
The KYC procedure is however not that simple. Investors are allowed to buy, sell and trade their virtual currencies whilst remaining anonymous. Only once they convert their cryptos into fiat, will anonymity fall away and they will have to disclose their identities.
Choe also commented on some local banks’ reluctance to issue virtual bank accounts for crypto holders. He said they would encourage these banks to engage with crypto holders and exchanges in order to gain their trust. This forms part of government’s real-name trading system intervention.
It is also said that South Korea could be giving licenses pretty soon to those cryptocurrency exchanges who follow their regulatory rules.
Venezuela “petro” crypto
In other news, Venezuela announced it would be releasing its own “petro” cryptocurrency last year. President Nicolas Madura, said that they have raised more than $375 million during the Initial Coin Offering (ICO) stage. However, Madura did not provide any evidence to support this statement that he made on Twitter.
According to Coinmarketcap, the price of Bitcoin is $11, 191.50 and Ethereum is trading at $892.94.