South Korea bans its military from trading cryptocurrency

South Korea has banned its military from trading cryptocurrency – at least not from their military bases – a notification issued by the government has revealed.

In the notification, the Ministry of Defence of the country has specifically banned cyrptocurrency trading by soldiers whilst at military bases. The military has also started shuttering access to websites that provide information about bitcoin and other cyrptocurrencies.

According to the ministry the ban on cryptocurrency trading is in line with other prohibited material on military bases. This includes pornography and online gambling websites.

Reports in the the local media also indicate that the military will not stop there and more countermeasures are going to be put in place to ensure that no soldier is able to carry out any cryptocurrency transaction. According to sources within the military, the tightening of regulations aimed to protect soldiers’ morale against the potential ill-effects of a market as volatile as cryptocurrency.

Since Monday access to websites about cryptocurrency and exchange pages have been blocked at internet cafes on military bases.

An online notice posted Monday by the military also said:
“According to internal rules, we will gradually shut down internet access to websites on encrypted currency starting Monday… We urge soldiers to refrain from visiting digital token exchanges to avoid disappointment from our decision to block access to relevant sites.”

The news about the military crackdown on Bitcoin and other cryptos comes amid heightened regulatory fear from South Korea. The government there have been posturing about changing legislation regarding digital currencies. It’s unclear how they will go about this at present. Finance Minister Dong-yeon said on Monday that the government were considering whether to shut down domestic crypto exchanges.

According to the government minister: “The thing is the scope of reasonable regulation, but there is no global standard on it… We are coming up with comprehensive regulatory packages, including taxation or real-name-based trading on digital tokens.”

Bryan White

Bryan has been a contributor in a number of online news publishing houses as a freelancer. He is a seasoned contributor with extensive experience in covering technology.

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