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Bitcoin Futures Banned in South Korea for its Citizens

Bitcoin Futures Banned in South Korea for its Citizens

South KoreaThere are often price rallies led by the traders in South Korea in the cryptocurrency market. Recently, the South Korea Government has taken a firm decision against this evolving young market.

The government has completely banned trading in Bitcoin futures for all its citizens offered by CBOE and CME. It is ironic to note that South Korea’s neighbouring country Japan has recently made Bitcoin legal and 4 Bitcoin exchanges are approved by them.

The Financial Service Commission of South Korea (FSC) has announced that it would not allow its citizens to enter into Bitcoin futures trading. They went on saying that trading in the Bitcoin future by any citizen would be considered illegal and robust actions would be taken against those people found guilty.

According to Korean Herald newspaper, this announcement from the South Korea government has led to the cancellation of several informational seminars on derivatives trading. One critical symposium which got cancelled is Shinhan Financial Investment which is a part of Shinhan Financial Group which announced that the banking division of the company would develop Bitcoin Wallets for its customers.

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Analysts are of the opinion that traders of South Korea to participate in the Bitcoin future would have been the best way to cool down the overheated market. But the government officials think the opposite and are taking stringent measures to prohibit such trade. In September 2017, Initial Coin Offerings (ICOs) was banned by South Korea government. It is to be noted that traders can have only one online cryptocurrency trading account which should be linked to their real identity.

It is quite distressing to note that legislators are hoping income and income transfer taxes on payments from Bitcoin and another cryptocurrency trading. As per Business Korea, the government of South Korea wants to levy a tax on the income by keeping track of cryptocurrency trade of its citizens.

Kim Jin-Hwa, ex-Korbit exchange while speaking on the announcement of the government, said that Bitcoin future is a groundbreaking technology and the government is not doing the right thing by banning its trade.

However, the value of Bitcoin remained the same in spite of the announcement of Bitcoin future ban by the government of South Korea. It is interesting to note that cryptocurrency reached the highest mark of $13,000. Following the approval of CFTC to list Bitcoin in CBOE and CME exchange, Japan is looking forward to making changes in the securities law and approve the future Bitcoin trading.

Shozo Ohta who is the CEO of Tokyo Financial Exchange said that he is going through several aspects of Bitcoin along with the overall impact on the Japanese society. Investors would hope that countries like South Korea, Indian and China soon to understand that developments on technical grounds can only get streamlined but cannot be stopped permanently.

Ed Lamadrid

Ed Lamadrid

I'm Ed Lamadrid, a CPA, blogger and a forex trader. Welcome to Top10FX.net. Follow my website for the most trustworthy forex broker reviews and last minute financial trading news.

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