The South Korean government is cracking down on bitcoin and bitcoin exchanges. There is proposed legislation to limit how banks are able to interact with cryptocurrencies and bitcoin notably. The law would prohibit South Korean companies from providing settlement services for cryptocurrency transactions which is crucial for credit and debit card transactions.

Additionally, earlier this month South Korea issued rules that restricted financial firms from investing in cryptocurrencies, however, it also levied capital gains taxes that conventional investors made from buying and selling the currency.

The law proposed by the South Korean government also prohibits companies from selling bitcoin anonymously. You can also expect even stricter rules will be on the way, according to a government statement. The government even suggested a nationwide ban on cryptocurrency exchanges which would follow China which is currently the only country that has successfully banned bitcoin exchanges.

Of course, the primary reason that China was even able to succeed in this endeavor is that of its “great firewall of China” which it has used in the past to block many websites that are anti-government or that the country finds unsuitable for it’s citizens.

While South Korea has an interesting take on banning the cryptocurrency I both see the value and negatives in blocking cryptocurrency exchanges. So long as the country learns from the technology behind these various forms of crypto whether or not exchanges are blocked won’t matter.

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