Government “Watch out for overheating of the cryptocurrency market… strict response to illegal activities”

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Moon Seung-wook, head of the Youth Policy Promotion Division, Office of State Affairs Coordination (Second Deputy Head of Office of State Affairs Coordination). 2020.12.23/News1 © News1 Reporter Min Kyung-seok

Cryptocurrencies, including bitcoin, climbed hundreds of percent this year, following the bull market that has continued since the end of last year, and the government has set out to calm the overheated cryptocurrency investment market.

The government held a meeting of ministries related to cryptocurrency on the 7th, presided over by Deputy Secretary of State Moon Seung-wook. This meeting was set up to review the recent cryptocurrency market conditions and to discuss future directions such as the revised Act on Reporting and Use of Specific Financial Transaction Information (Special Law). The meeting was attended by the Financial Services Commission, the Ministry of Strategy and Finance, the Ministry of Justice, the Office of the Police Agency, and the director.

At a meeting, Seung-wook Moon, 2nd Deputy Secretary of State, said, “Cryptocurrency is not a legal currency or financial investment product, and no one guarantees its value, so anytime high price volatility incurs a large loss due to illegal activities, speculative demand, and changes in the domestic and overseas regulatory environment. It should be noted that you can,” he warned.

He added, “A series of activities such as cryptocurrency mining, investment, trading, etc., need to be carefully judged under their own responsibility.” “As there are cases of damage to investors due to crimes using cryptocurrency, investors are fully aware of the possibility of such damage. I have to do it,” he said.

At the meeting, discussions on the revised special special law were also followed. Seung-wook Moon, 2nd Deputy Secretary of State, said, “With the revision of the Special Payment Act, in the case of existing business operators, business reports must be completed by September 24, so some business operators may close business without reporting, so investors do business to avoid damages related to this. “Please check as much as possible whether the report of the company, business continuity, etc.”

The government is planning to carry out preliminary guidance and computer connection work for the establishment of related infrastructure such as securing transaction details for the taxation of cryptocurrency income, which will be implemented from January next year.

In addition, the government emphasized that it will closely monitor the situation of the cryptocurrency market to prevent excessive cryptocurrency speculation and actively strive to prevent damage to investors. In particular, he expressed his willingness to strictly crack down on illegal activities related to transactions such as market manipulation, money laundering, and tax evasion using cryptocurrency through cooperation with the police, prosecutors and financial authorities.

The police plan to intensively crack down on illegal activities related to cryptocurrency transactions through the ‘Eradication Team for the Elimination of Infringements of the Common People’s Economy’, and systematically respond to illegal activities through overseas cryptocurrency trading sites in cooperation with international organizations such as Interpol. .