"There are many concerns regarding the digital currency," Justice Minister Park Sang-ki told a news conference.
The South Korean government made this decision after it was learned that the prices of bitcoin, Ethereum, and other popular digital currencies, on the South Korean market are more expensive than in other countries.
The South Korean government has indeed decided to tighten regulations related to digital currency since a few months ago.
In September last year, South Korea banned ICO (Initial Coin Offering). While in December, the government submitted a regulatory proposal that would tighten regulation related to digital currency.
Since December, the government has already implied a possible ban on digital currency exchange in South Korea. At that time, China was the only country that banned the sale and purchase of digital currency. China can do that because they have a Chinese Firewall.
The South Korean government's decision is part of their efforts to tighten the use of digital currency. Prior to this, tax and police agencies raided the largest digital currency exchange on tax evasion charges.
However, it remains unknown whether the government will eventually block the transaction of digital currency. The president's office has clarified that the regulation related to such blocking has not been ascertained.
