By Lee Hana

The Korean government released an official statement regarding measures related to cryptocurrency exchanges during a press briefing at the Government Complex Seoul on Jan. 15.

"As previously announced on Dec. 28, 2017, the government has banned the use of anonymous virtual accounts in cryptocurrency transactions, and will require real-name accounts for all cryptocurrency trading," said Jung Ki-joon, deputy minister for economic policy coordination.

"Meanwhile, the government will deal sternly with any illegal acts committed by cryptocurrency traders, including price rigging, money laundering or tax evasion. The prosecutor's office, the police department and financial authorities will all be involved in crime control. While we're prepared to crack down on cryptocurrency speculation, we will still fund R&D into blockchain technology, the accounting method used for virtual currencies," he said.

The deputy minister also warned traders of the risks posed by some cryptocurrency exchanges.

"Virtual currencies are not legal tender, and their value is not guaranteed by any entity. Therefore their value can fluctuate exponentially, depending on speculation or even illegal acts, and also depending on regulation changes in local and foreign markets. So when mining for cryptocurrencies, or investing in and trading Bitcoins, it's important to do so at one's own discretion, with a measure of prudence," he said.

"All policies related to cryptocurrency exchanges have been discussed across the board, with meetings held at the vice ministerial level at the Office for Government Policy Coordination (OPC). Moving forward, we will continue to consult and gather the opinions of all government bodies, with the OPC coordinating the operation," he said.

"The government will make a decision on a proposed shutdown of all cryptocurrency exchanges after sufficient consultation with all related organizations," he said.

hlee10@korea.kr