Report: South Korea May Join Forces With China and Japan to Curb Crypto Speculation

In the latest twist in the South Korea cryptocurrency crackdown saga, the nation is reportedly looking to tie up with China and Japan to curb “irrational” cryptocurrency speculation. Take it away, Coindesk:

A Jan. 8 report by Yonhap News states that representatives from the Korean Financial Services Commission (FSC), as well as those from the relevant agencies in Japan and China, met last month to discuss the oversight of cryptocurrency investment.

FSC chairman Choi Jong-ku, according to the source, told reporters that the countries plan to cooperate in their efforts to curb speculative investing. Jong-ku reportedly called investing in cryptocurrencies “irrational,” going on to say:

“[A] fever of speculative investment in cryptocurrencies is ongoing … however, cryptocurrencies are unable to play a role as a means of payment.”

The news comes shortly after Korea began its crackdown on cryptocurrency trading. It has so far banned anonymous trading accounts and suspended institutions from investing in digital currencies. More recently, the nation has probed six banks over clients’ crypto accounts, hinting that they might be involved in fraudulent – perhaps even criminal – behavior.

South Korea is a major center for cryptocurrency trading and has been used as a bellwether for global demand. Prices in the nation have risen to such heights that when Coinmarketcap.com removed data from South Korean exchanges from its price quotes, the cryptocurrency market cratered by $100 billion.

Despite the crackdown however, crypto trading remains highly popular in the nation, with premiums over the global market – known as “kimchi premium” – remaining high.

Photo: Fredrik Rubensson