South Korea Plans 2021 Privacy Coins Ban
Japan and South Korea share a troubled history together. Although they are both allies of the United States and form a front against China, the South Koreans see themselves as a true democratic superpower whilst Japan is still thought of as a colonial empire from the past.
Because of the many scandals that the two governments have seen in the past, it is rare when they do agree on something. This week however, South Korea decided to copy something that Japan had already done two years ago, namely to install a ban on privacy coins. Earlier they decided to impose a 20% tax on crypto gains.
Privacy coins like Monero (XMR) and Zcash (ZEC) will become illegal in South Korea from Mar. 2021.— Crypto-News (@criptikos) November 19, 2020
The news is the latest assault on encryption and privacy as regulators enact laws targeting such protocols amid intensifying anti-money laundering (AML) e… https://t.co/ylvg58WIJ3
Yes, crypto regulation continues to advance in South Korea. As the Seoul Central Bank accelerates the creation of a CBDC (central bank digital currency), the South Korean government decided to move in tandem. It has just announced a ban on trading in anonymous cryptocurrencies.
- Also read: top 5 no-KYC crypto exchanges.
No more Monero (XMR)
Despite cryptocurrency legalization was written into law as from March 2020, the South Korean government has decided it would ban anonymous cryptocurrency trading effective March 21, 2021, according to a report from CPO Magazine. As from that moment, it will thus no longer be possible to trade cryptocurrencies, such as Monero, Zcash and DASH.
The move comes amid tightening regulations around cryptocurrencies and warnings from investors that several large crypto coins could be met with regulation in the coming years as global acceptance of crypto grows.