200k People Sign Petition to Stop South Korea from Banning Trading

One of the main reasons behind the latest fall in digital currency prices consist of the new regulatory measures being taken by South Korea. The country has announced a crackdown on cryptocurrencies, in order to prevent money laundering, tax evasion and illegal financing.

At this time, South Korea is considering shutting down domestic digital currency exchanges, following increasing speculation and price volatility. In an effort to convince the government to no longer implement these measures, which would hurt the digital currency economy, over 220,000 people have signed a petition launched on the South Korean Presidential Office website. The current South Korean laws require officials to respond to petitions with over 200,000 signatures in a maximum of 30 days.

The country represents a big player in the digital currency market, especially after numerous exchanges initially based in China moved abroad to South Korea, in order to continue serving their customers. This has led to a high percentage of trading volume coming directly from South Korea. A full ban of exchanges and trading platforms may encourage even higher volatility, just like we’ve recently seen following the first reports on the subject.

It is important to point out the fact that banning trading effectively would require a majority vote, and the process can take anywhere between a few months to a few years. This will buy traders a bit more time if the law passes, yet its effects will be surely felt throughout the world.

The petition is only against the idea of banning exchanges and trading platforms. Yet, it supports some of the regulations being implemented by the South Korean government, such as the banning of anonymous trading accounts, banning of under-aged investors, and banning of foreigners from investing in the South Korean market.

Based on everything that has been outlined so far, the position of the South Korean government remains contradictory. However, the government will likely respond to the petition soon, therefore shedding some light on the on-going confusion in the region.