Banks in South Korea to be encouraged to transact with crypto exchanges

In what can be seen as a major u-turn for the South Korean government, it has come to light that banks in the country will be encouraged to transact with cryptocurrency exchanges.

The report comes weeks after there was a huge public opposition in the country over possibilities of a crypto ban. The public outcry was so massive that there were reports that foreign companies were on the verge of leaving the country and setting up shop where crypto was welcome. Government officials have now come out in support of “normal” crypto trading.

According to local media, Choe Heung-sik, governor of the Financial Supervisory Service, said earlier today that the government will support “normal transactions” of cryptocurrencies. While there is no clarity on what the message could mean, remarks were made during a meeting with South Korean crypto exchanges where Heung-sik said they “will support (cryptocurrency trading) if normal transactions are made.”

The South Korean government has enacted a number of regulatory measures, including requirements for identity verifications through in-person bank account openings, placing stringent AML/KYC processes.

With South Korean exchanges generally responsive to their proposals, the government there now seems to be happy with how things stand, Heung-sik going so far as stating: “the government will encourage banks to make transactions with cryptocurrency exchanges.”

The situation does however still remain somewhat uncertain in the country, especially when compared to the very crypto friendly neighboring Japan. So we might have to wait for further signals from South Korean officials to better see in what direction they wish to go as far as this space is concerned.