Korean Supreme Court to Decide on Legality of Cryptocurrency Regulations

The lawsuit filed in the Constitutional Court against South Korea’s regulations on cryptocurrencies has been moved to the Supreme Court. If, at the end of the litigation process, it is decided that South Korea’s regulations are unconstitutional, all regulations regarding cryptocurrencies in the country may be invalidated.

Transferred to Supreme Court

At the end of December, a constitutional appeal against the South Korean government’s regulation of cryptocurrencies was referred to the Supreme Court by the country’s Constitutional Court. ” said. Jeong’s law office stated:. So this is the government’s violation of people’s property rights through illegal practices.”. The petition also demands that the government respect people’s property rights and states that regulation should only be made after public consensus has been reached.

Is the Real-Name System Unjust?

Applied to cryptocurrencies Under regulations, the government declared that accounts on cryptocurrency exchanges must be opened using real-names.. This system has also been implemented as of January 30.

According to the regulators, all digital accounts used by crypto money investors must be opened using a real-name or money will not be able to be deposited into these accounts.. However, even a week after this decision, only 8.21% of digital accounts on the country’s four largest exchanges have complied with these regulations, and there are still 1.6 million accounts that remain against the regulations.

In addition, banks in the country only Upbit, They provide this real-name conversion service for Bithumb, Coinone and Korbit exchanges which means that small exchanges in the country are left without help.. Economic Review:

“The most important issue with the real-name system in digital currencies is injustice. The government should clarify on what grounds in the main jurisdiction it is enacting the digital currency real-name system. The simple lines given to people in the Constitution can only be restricted by laws set by the National Assembly.”

According to Top Star News, “the government claims the real-name system is legitimate under the Banking Law and the Financial Information Act. ” but despite the government’s insistence:

“If the court decides that (this) is unconstitutional, all the government’s cryptocurrency regulations could be overturned.”

Economic Review’ According to the Constitutional Court Law, this issue “must be decided within 180 days” and the case was filed on 30 December.. So the case is expected to be clarified at the end of June.

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