South Korea's Fair Trade Commission Chairman Kim Sang-jo pushed back forcefully against proposals to prohibit cryptocurrency exchanges during remarks made on a radio broadcast this week. In his commen
South Korea's Fair Trade Commission Chairman Kim Sang-jo pushed back forcefully against proposals to prohibit cryptocurrency exchanges during remarks made on a radio broadcast this week. In his comments, Kim rejected the notion that cryptocurrency trading bans could feasibly be implemented, characterizing such a step as economically unfounded and administratively impossible.
The chairman's position carries particular weight given the scale of crypto activity in South Korea. The nation's leading digital asset platforms—Bithumb, Coinone, and Korbit—have come to process trading volumes that dwarf those of the country's primary equities venue, KOSDAQ. Eliminating these exchanges would effectively erase a major economic pillar, Kim noted, comparable to dismantling the stock market itself. The government lacks both the practical capacity and legal standing to absorb such fallout.
From a policy perspective, Kim argued that outright prohibition represents a misguided approach that creates more complications than it resolves. Rather than resorting to blunt-force measures, authorities should construct a regulatory framework that allows the crypto sector to operate transparently and with proper safeguards.
Elaborating on his stance, Kim stated: "[Banning cryptocurrency exchanges] is not realistically possible. Based on the electronic commerce law, the government doesn't even have the authority to close down cryptocurrency trading platforms. From the viewpoint of an economist, it is not a fair and transparent decision to outright ban economic activity. Whether it is excessive speculation or not, the gain or the loss is the responsibility of the investor."
A critical component of Kim's argument concerns how risk should be distributed. He emphasized that governments should not assume the role of evaluating which investments are prudent or excessive on behalf of citizens. Market participants themselves bear accountability for outcomes—both positive and negative—of their financial decisions. This responsibility cannot rightfully be transferred to the state.
The Fair Trade Commission, a key player in the government's cryptocurrency regulatory working group, has now formally urged authorities to adopt a more even-handed approach while developing measured policies designed to strengthen rather than stifle the market.
The push back from officials comes amid significant public resistance to trading restrictions. Justice Minister Park Sang-ki's recent remarks hinting at possible restrictions sparked considerable backlash, with more than 250,000 people submitting a petition to the Blue House requesting that President Moon Jae-in's administration abandon any cryptocurrency ban initiative.
