INSTITUTIONALIZING VIRTUAL CURRENCY

[Anchor Lead]

Financial authorities continue to rebut the claim that virtual currency must be institutionalized. Some cryptocurrency exchanges are trying to enforce their own restrictions.

[Pkg]

Cryptocurrency investors are unhappy with the government's decision to levy taxes without market interference.

[Soundbite] (Cryptocurrency investor(VOICE MODIFIED)) : "Taxes on cryptocurrencies can be levied only after it's recognized as money. I don't understand why they impose taxes without recognizing it as money first."

[Soundbite] (Cryptocurrency investor(VOICE MODIFIED)) : "I'm outraged because they keep blocking virtual coins, calling it gambling."

A public petition has been filed with Cheong Wa Dae regarding the chief of the Financial Services Commission, who mentioned the possibility of closing cryptocurrency exchanges. But the commission's stance hasn't changed. An FSC official said it would be difficult to institutionalize cryptocurrencies, as the government does not believe in their intrinsic value and this could send the wrong signal to investors. Citing the examples of China and other countries, the official said the institutionalization of virtual currencies is not a global trend. Cryptocurrency experts who have been calling for institutionalization are criticizing financial authorities for denying the reality.

[Soundbite] Park Sung-joon(Dongguk Univ.) : "China has banned cryptocurrencies. But it has three advanced platforms among　blockchains and cryptocurrencies. It's different in reality."

With financial authorities issuing warnings one by one, virtual currency exchanges are keeping low-key. Some are posting examples of fraudulent cases of cryptocurrency listings on their websites and even enforcing their own restrictions such as limiting daily deposits. Some point out that given the daily amount of cryptocurrency transactions of 20 trillion won and steep price fluctuations, leaving the matter only to private exchanges is not enough.