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Is South Korea huge market for traders after legalization of Bitcoin

Jul 25, 2017 Posted /  4414 Views

Is South Korea huge market for traders after legalization of Bitcoin

Is South Korea huge market for traders after legalization of Bitcoin?

South Korea customarily legalizes bitcoin, this is a huge market for traders. For bitcoin trading platforms and exchanges South Korea is one of the verge of providing a regulatory platform because of officially international bitcoin transfers which was certainly different from that in another countries. The representative of the ruling Democratic party did reveal that the South Korean government was totally ready to regulate the bitcoin market on July 3 which depicted that the arrival of Bitcoin in the Korean marketswere not the same as that of another countries. He submitted three revisions to build a set of regulatory framework for businesses so that if benefits the citizens and bitcoin users for growth of the South Korean bitcoin market and industry.

The financial managers of South Korea requested bitcoin business and trading platforms and asked them to retain capital of at least $436,000. They also demanded data processing facilities for Know Your Customer{KYC}and Ant-Money Laundering {AML} purposes. This is a proposal of one of the revisions Rep. Park. This was thought to bring the essential change which was visualized for South Korea.

Every trader, broker or other business entities involved in cryptocurrency transaction would be required to get them approved from the Financial Service Commission which in turn reduced the chance of any duplicacy and duality.  According to the bill that aimed at revising the Electronic Financial Transaction Act; the requirements represented the retention of capital by at least 500 million. They also wanted to multiply the data processing so as to assure that it is more convenient for their people to cope with the new facility. It wanted that everyone should be able to get embraced by this.

The several regulatory frameworks for the bitcoin industry has been introduced by the South Korean government. South Korean government legalized bitcoin service providers to facilitate transfer, payments and trades. They monitored each and every aspect of the bitcoin trading system. They knew that it was something which wasn’t decentralized and hence would turn out to be a great risk for the trading system, but they were also were with the flourishing bitcoin trading system in other countries. Therefore, they didn’t want to leave any stone unturned when it came to the development and growth of their country and its people.

Behind the rising price of bitcoin, bithumb and the coinone which were dominating the trade volume ranks, it was South Korea which was a major factor. Than anywhere else in the world South Korea was paying more for cryptocurrencies. They were paid 10% extra due to the extremely high demand for Crypto and the restrictions on transferring the Korean won out of the country. This way it used to outshine the other countries.

Across the South Korean border, bitcoin turned out being one of the approved lists of technologies that could move payments, starting from the upcoming week. South Korean was permitted by Fintech companies allowing them to legally offer bitcoin international transfer servives. They took proper permission before their decision.

Bitcoin is one of the ways to transfer money abroad. This way is safe as well. Due to this reason the South Korean government has been very friendly towards digital currencies and the country is becoming a technology hub. For the bitcoincompanies working with remittance the government lowered the equity capital requirement just recently. With a reduction of the required capital to 1 billion KRW, the contrast to the prior requirement of 2 billion KRW finally began on June 18.

There was a different type of dual currency regime which was new and was from the recent emergence of digital currency. It had no intrinsic value. It signified a government- issued flat currency and its coexistence.

Both trades and businesses will operate within the legal boundary without running financial regulations ensured by regulation and legalization of bitcoin and virtual currencies. In terms of digital currency transaction, user protection, tax evasion and money laundering have been issues. Because they are out of a legal boundary digital currency traders have often felt this issue of trading using bitcoin.

 After several debates, discussions and amendments, it is observed that Bitcoin is to make a long way in the Korean Trading System. The involvement of the government in the entire process makes it even more trustworthy for the people of South Korea. Hence, they could easily perform the international trades with utmost ease and simplicity. There is also a transparency which is maintained and appreciated by the citizens. 

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