South Korea Cautions Consumers on Cryptocurrencies instead of Ban, Meanwhile Report Says Largest Exchange Bithumb Has Been Hacked

South Korea has decided not to ban cryptocurrencies after all, instead the Korean government has decided to caution consumers on purchasing or trading in cryptocurrencies while regulators attempt to better manage the emerging market.  Previously, it was expected that Korean government officials were going to take a more draconian approach. In fact, expectations were for a total ban on initial coin offerings and perhaps trading overall.  This week, the Financial Services Commission (FSC) issued a warning to consumers regarding investing in “virtual currency related shares.”

BusinessKore reports the the FSC will will create language for legislation to regulate cryptocurrency exchanges. This action and more will help “clean up” the crypto market.

Market participants were relieved a more tolerant view of Bitcoin and other digital currencies appeared to be the new posture by public officials. South Korea has become one of the top crypto markets in the world following China’s decision to ban exchanges.

Meanwhile, BBC reports that South Korea’s largest exchange has been hacked by North Korean’s. Bithumb reportedly experienced a loss of approximately $7 million.  The source of the info was said to be South Korea’s spy agency. Hackers supposedly held traders personal information for ransom as well.

North Korea is desperate for hard currency to pay for development of nuclear weapons and more. Hacking crypto exchanges has become an easy option for the North Korean’s – that and counterfeiting reserve currencies.

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