South Korea has created a buzz in the world of cryptocurrency and exchanges with the rumours that it is going to ban the cryptocurrency exchange and trading throughout the country. As soon as the news released, prices of cryptocurrencies slashed by 50% which caused immense loss to the traders all over the world.
The effect of South Korea’s new regulations on cryptocurrency worldwide
After the rumours, the officials came out and stated that the ban was imposed just for security measures and it had a direct effect on the cryptocurrency market. From falling down to $428 billion, the market did rise up to $620 billion.
These new regulations and security aspects were proposed to restrict the unverified accounts from trading the digital assets. Not just South Korea, even China imposed ban on trading in 2017 which caused a lot of companies to move their operations to South Korea.
With the new regulations, there are some cryptocurrencies which banned the non-citizens from depositing local cryptocurrencies. This shift has also banned foreign nationals from depositing funds to their accounts. It was also stated that the new rules and regulations would ban anonymous exchanges and prevent the new users from getting scammed.
South Korea’s second largest bank to support cryptocurrency exchange
News which grabbed the attention about cryptocurrency in South Korea was the acceptance of cryptocurrency by the second largest bank of South Korea. Sinhan bank will accept exchanges and trading from 20th January or February instead of the Kookim bank. This method will be used to prevent scams and anonymous transactions. It is also aimed to promote anti-money laundering and these changes would stabilize the cryptocurrency markets further.
Next month, South Korean government may propose regulations to protect the users, businesses and investors from getting scammed. As the ban is not imposed, the decision has created stability in the market and the rise in price as well in the volume of cryptocurrencies has been witnessed.
It is also stated that the currency exchanges would have to share the user’s data with banks for tax payment collections and for security purposes. This also made the companies witness high rise in the bitcoin value. The bitcoin value did rise up to $20,000 which was quite high.
After such speculations, officials state that cryptocurrency exchange cannot be easily shut as the government does not have that authority as per the rules and regulations.