South Korea
South Korea Government Pivots Away from Cryptocurrency
October 18, 2019
South Korea
South Korea Government Pivots Away from Cryptocurrency
October 18, 2019

The regulators of South Korea have grown increasingly hostile towards digital currencies while continuing to support blockchain development. As a result, many local crypto exchanges face closure.

However, local politicians and regulators have started lobbying for a new set of regulations that are expected to provide clarity for stakeholders in the crypto market.

Although crypto exchanges in South Korea are allowed to trade Bitcoin (BTC) and other digital currencies, the number of trading platforms has continued to decrease. Most recently, Prixbit shut down in early August “due to negative internal and external influences”, according to a statement by the exchange’s owner. 

Apart from the country’s largest players Upbit, Coinone, Bithumb, and Korbit, widely known as ‘the Big Four’ of the South Korean crypto market. Many small and medium-sized exchanges are unable to open real-name virtual accounts for their users due to a lack of support from Korean banks.

Big Four Benefits from Unfair Competition

South Korea’s government launched a real-name trading system for cryptocurrency activities as part of its anti-money laundering (AML) measures in January 2018.

ALSO READ :  Ngrave Launches Physical Private Key Backup Engraved On A Steel Plate

However, only the Big Four exchanges have been successful in establishing the necessary relations with local banks so far. New regulations have gone even further, requiring crypto exchanges to share users’ transaction data with banks and traders to use bank accounts opened under their real name to link with their trading account.

Park Jong-Baek, a partner at South Korean law firm BKL, said:

“Out of about six banks which set up such an account system, only three decided to provide such account service to only big four exchanges.”

Park Jong-Baek

Source: Asia Blockchain Review


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.
Share This

Share This

Share this post with your friends!