The central bank of South Korea stated on Monday that they would not consider Bitcoin a currency but instead as a commodity. Lee Ju-yeol, the bank’s governor, refuted the notion that digital currency must be taken into consideration legal tender.
Lee Ju-yeol said:
“Law of cryptocurrencies is suitable as it is regarded as a commodity. It can’t be regulated at the level of a currency.”
The statement on Monday comes because the first information from the country of South Korea concerning cryptocurrency since the ban on initial coin offerings, which came into area following China’s ruling this September. Talking in South Korea’s capital, Lee Ju-yeol claimed that the space wanted further regulation because digital currency was a commodity, instead of a currency.
Lee Ju-yeol stated:
“It isn’t a situation for the bank of Korea to take such an action at the present.”
Throughout Monday’s countrywide meeting audit of the bank of Korea, each the governor of the institution and a Democratic Party Politician, Song Young, noted that the financial institution’s research into digital currency could use improvement.
This is in spite of a cryptocurrency project force being created in advance these 12 months to investigate capacity law and licensing problems surrounding Bitcoin and Bitcoin exchanges. It was later mentioned that the group did not reach consensus about how digital currency s must be handled legally. However, Lee Ju-yeol pledged to comply with the instance of such countries as Sweden in their mindset and exploration of subjects surrounding digital currency.
The central bank statement comes weeks after an assembly with the IMF wherein the Asian Economic Power agreed to step up their supervision of cryptocurrency-associated matters within their borders. However, evidently the planet’s third biggest dealer of digital currency will stay free of regulation, even though in line with Monday’s statement, the times wherein investors can enjoy this liberty are actually numbered.