South Korea Deemed Cryptocurrencies as Dark Coins

[Tine0313 3053]

According to a press release statement issued by South Korea’s Financial Services Commission (FSC) last Tuesday, (November 3, 2020) they have decided to ban anonymous digital currencies that possess a high-risk of money laundering where they used "dark coins" to describe these currencies. 

The regulators decided to update the Special Payments Act (covers the legality of cryptocurrencies in the country) to tackle the issues of money laundering that might arise from cryptocurrency. The statement highlighted privacy coins, which it referred to as dark coins, such as Zcash (ZEC) and Monero (XMR). Additional changes include updates to KYC and AML procedures, mandating that exchanges and other providers ask users to link their accounts to their real names through government identity numbers. These changes will be imposed on March 2021, with exchanges asked to offer a report on operations within six months of the law’s institution.

Last September 2019, a South Korean arm of OKEx delisted Zcash, Monero, DASH, Horizen (ZEN), and Super Bitcoin (SBTC) due to the prevalent regulations. UpBit, a South Korean exchange delisted and stopped the trading of several cryptocurrencies due to money laundering concerns and adhering to the Financial Action Task Force (FATF) regulations.

[minisrt_black 1112]

I believe that this is because Korea is a very strict country and it wants to keep control of everything that happens in the country , and as we know the crypt is an anonymous currency, so there will be no control

[Tine0313 3053]

17 minutes ago, minisrt_black said:

I believe that this is because Korea is a very strict country and it wants to keep control of everything that happens in the country , and as we know the crypt is an anonymous currency, so there will be no control

Maybe that why they banned what they cannot control. But cryptocurrency is not always use in money laundering. I think Korean government did not given the chance to know the good sides of cryptocurrency. 

[Hatred 1388]

2 hours ago, Tine0313 said:

Maybe that why they banned what they cannot control. But cryptocurrency is not always use in money laundering. I think Korean government did not given the chance to know the good sides of cryptocurrency. 

I think they not interested if they can't control it or not. I think they are just making some pre-emptive measure for them to not loss a lot of money in just an instant. But you are right, they not check the good side of crypto and already jump into conclusion. I hope they'll change their mind and make a good decision about it's implementation on their country.

[wassim19 645]

I think that this step is not good for digital currencies, especially since South Korea is one of the most technologically advanced countries. This may affect slightly the users of digital currencies inside the country of South Korea.

[Maaz sultan 265]

This is correct decision its governments duty to make laws to reduce illegal actions on these crypto currencies like money laundering and avoid to pays taxes . I suggest every country need to accepts these crypto currencies but in some limitations like we must verify KYC forum to make any transactions .

[Mcd0d0 5882]

9 hours ago, Hatred said:

I think they not interested if they can't control it or not. I think they are just making some pre-emptive measure for them to not loss a lot of money in just an instant. But you are right, they not check the good side of crypto and already jump into conclusion. I hope they'll change their mind and make a good decision about it's implementation on their country.

In this topic, it talks about to the crypto coins which is using to the laundering which is very illegal, they're totally accepting cryptocurrency but in this case, they're just doing it to avoid the laundering using cryptocurrency, the government of south korea cannot control them because this is the nature for cryptocurrency so they need to make a move to stop it.

[Flying11Horse 45]

20 hours ago, Maaz sultan said:

This is correct decision its governments duty to make laws to reduce illegal actions on these crypto currencies like money laundering and avoid to pays taxes . I suggest every country need to accepts these crypto currencies but in some limitations like we must verify KYC forum to make any transactions .

You are right @Maaz sultan many countries of the world are not accepting crypto currencies because they think that it can be used for terror finance or money laundering.Their concern is right but there should be a way like you have said regarding filling of the KYC forum before any transaction.It can be used to trace the person how is doing a transaction and saves his data.

[Hatred 1388]

On 11/7/2020 at 9:47 AM, Mcd0d0 said:

In this topic, it talks about to the crypto coins which is using to the laundering which is very illegal, they're totally accepting cryptocurrency but in this case, they're just doing it to avoid the laundering using cryptocurrency, the government of south korea cannot control them because this is the nature for cryptocurrency so they need to make a move to stop it.

Yup, I know. HAHAHA. They just being careful for them to not be tricked and lost lots of money. But just like I've said, I hope they also look on the good side on crypto because eventually, they can use it also for their country's economy grow much faster and efficient.

[Mcd0d0 5882]

2 hours ago, Hatred said:

But just like I've said, I hope they also look on the good side on crypto

Well, they're looking at the good side of cryptocurrency and that's why they're accepting it, they just can't control it so that there's a lot of people using it in any kind of illegal activities.

[Hatred 1388]

9 minutes ago, Mcd0d0 said:

Well, they're looking at the good side of cryptocurrency and that's why they're accepting it, they just can't control it so that there's a lot of people using it in any kind of illegal activities.

Well, they need to expect it for cryptocurrency. Fiat is also like that so they also need to accept that fact. In that way, they can easily adopt in the environment of crypto and prevent those illegal activities.

[Amiami 1362]

It is a matter of time for this type of regulations to expand to the laws of other States, anonymous currencies represent everything bad about cryptos but at the same time defend the basis of them, I mean anonymity, however if you want  For this market to be legalized and established, it is best to forget the anonymous coins.

[Syedbesharat 5423]

Getting  label od crypto from south Korea isn't good for crypto users in their country. The users will think crypto as illegal thing and prevent investment. The exchanges will face effect of this label and their activities  will suffer more gradually. The south korea is advance country and have  more advancement versus Europe. They have to consider their report related to crypto currency. 

[Zeshan Khalid 2577]

These coins must be given legal protection, money laundering and other crimes associated with crypto are going to increase with negligence. So, world should get out if the complex that crypto currency is dangerous for economy and accept its advantages.

[JesusFries 1958]

Strict countries in the East like South Korea has always been keen with things like this. The government seems underwent a wide-range investigation about this one though. South Korean officials are doing their best to protect their people but I really hope that they will become more open about digital currencies because it will eventually help with the development of their country. 

[Froshk 1828]

Well I believe the government has the utmost right to choose what is best for its people, if the south Korea government sees crypto as a dark currency it doesn't stop the ever advancing progress of cryptocurrencies, infact, it only limits their economic activities as compared to the USA, CHINA, RUSSIA etc

[Mcd0d0 5882]

On 11/8/2020 at 8:46 PM, Hatred said:

they can easily adopt in the environment of crypto and prevent those illegal activities.

Well, it's not easy to prevent those illegal activities which is involved the cryptocurrency because they cannot control those people who are using cryptocurrency and it's hard to detect those people using crypto in illegal way by having an anonymous transactions.

[BrolySSJ 7899]

This is quite a drastic turn very fast, but understandably so. Since there are many of these coins that are used for events such as money laundering and other criminal activities, it is necessary to have some sort of control and way to track these coins. Therefore, the banning of these coins and calling them dark currencies is completely justifiable. As for the stricter kyc verifications that are required and linking their accounts to their government identification number, this will be a good way to regulate the use of crypto and in order for the government to narrow in on those that are using crypto illegally as well. 

[Hatred 1388]

9 hours ago, Mcd0d0 said:

Well, it's not easy to prevent those illegal activities which is involved the cryptocurrency because they cannot control those people who are using cryptocurrency and it's hard to detect those people using crypto in illegal way by having an anonymous transactions.

Yup, I know, I just want to say is they can make some pre-emptive measures so they can't get involve in illegal activities in crypto and they will not lose lots of money. 

[percare 3192]

Privacy coins are getting delisted from many websites for this reason. They are seen as a method used by criminals and big exchanges started delisting Monero and Zcash. I think that instead there should be a target to the criminals that mostly use the dollar for their transactions and not privacy coins.

[Mwangi 5611]

I think a country looks around and checks what is the right and perfect way of going round any for of story that we see around here we need to really put together strategies that are important for us we need to keep on trying as hard to really understand everything in the righ ideas we see around here in this market there are important other ways to really follow , a country has the right to shut some of the loop holes that could damage the society or the economy at whole that is very important.

[Mike1515 2977]

I think as @Mwangi has stated , its important that we do look at this, because every threat for the current system is always toughing on the economy and if that does not at any one point issue it as a threat we need to be very careful and put together the most important strategy that would work and getting clear the system to avoid fraud or failure of the countries market is very important @Bpman1321G Thats true and its part of the regulation that is going on there.

[glory50 1259]

it was bound to happen and @Mwangi its important you check on that, but @Mike1515 its bound to happen and to me there is time for every single thing to happen we need to work and put together everything in the right perspective and we need to follow the right track in adopting if there is any consern as to why this may not be the right thing then its important you avoid the mistake and keep going on

[Brandonsaw 1973]

There are many countries that are against cryptocurrencies and it is because they use them in black markets, for example the deepweb, people pay with cryptocurrencies since it is a currency that cannot be traced which they combine to pay with cryptocurrencies so as not to be  tracked.

[annayks 2314]

This is bad for Monero, Zcash and the rest private cryptocurrencies, these were used to create better privacy and many crypto holders used them to hide their wallets for security reasons having to do with scammers and hackers. With this decision it is makes access to these coins harder.