Western news outlets reported this week that South Korean police raided cryptocurrency exchanges. The story was false, but the market fell. Local outlets JTBC and SBS reported what actually happened.
Western news outlets reported this week that South Korean police raided cryptocurrency exchanges. The story was false, but the market fell.
Local outlets JTBC and SBS reported what actually happened. Financial authorities visited exchanges for unannounced interviews. A raid means forced, sudden action. These visits were part of an investigation by a task force that included the Ministry of Strategy and Finance, the Financial Services Commission, the Ministry of Justice, the Fair Trade Commission, and the Financial Supervisory Commission.
The South Korean government was worried. Trading volumes were climbing. Speculation was rampant. Officials decided stricter rules were necessary.
Justice Minister Park Sang-ki acted on January 11 during a press conference. He announced the government was drafting a bill to ban cryptocurrency trading, and the market fell again.
That sparked a crisis. The Ministry of Strategy and Finance opposed the ban. The Blue House, where President Moon Jae-in leads, said Park didn't speak for the government. Official policy remained: regulate the market and foster growth while protecting investors and managing risk.
Park faced immediate backlash. Opposition politicians attacked him. So did officials in his own ministry, accusing him of market manipulation for his careless statement. Citizens pressed the Blue House too. Nearly 100,000 demanded Park's removal. Another 30,000 called for both Park and the Finance Minister to resign. Government officials were shocked by the response.
In coming weeks, South Korean exchanges will work with authorities on new regulations.
