South Korea is the world’s major market for cryptocurrencies, after the U.S. and Japan. The country's population is quite less, however, it is the colossal association of their numbers that to a great degree, states the value of cryptocurrencies globally.
The assumption over the virtual currency gives the impression that has been unreasonably hyped plus the government of South Korea now wants to initiate some steps to hold back the crypto obsession in the nation-state.
To explain in simple words, by mere speculations, South Korea wins to control the cryptocurrency prices. As it is predicted by the Blockchain Industry Association, South Korea has over a number of cryptocurrency exchanges, counting Korbit, Bithumb plus Coinone. This implies that even in a country with less than fifty million people, the need for cryptocurrency is such that cryptocurrencies have dealt at prices above thirty percent greater than other countries.
To be frank, there are quite a lot of things happening in the South Korean crypto market. There’s been lots of upsurge to the mayhem that we are presently witnessing in South Korea. It all commenced with the South Korean government legitimately permitting the Bitcoin service suppliers to smoothen the progress of transfers, payments, and trades back in July 2017, thus causing a noteworthy development in the need for cryptocurrency trading in the country. As per the reports, in August 2017, North Korean hackers were aiming South Korean Bitcoin exchanges and thus by the commencement of September, reports started to surface about South Korea setting up to entail harsh regulations on digital currencies. These rumors, by December, turned extra stern based on guesswork that this will modify into a complete prohibition on cryptocurrency exchanges.
An unsteady start!
The government proclaimed additional regulatory policies to prohibit unidentified cryptocurrency trading with the intention to have power over cryptocurrency rumors. CoinMarketCap detached more than a few South Korean exchanges from its website, not long after this proclamation, affirming tremendous cost deviation as the explanation.
Then reports of a comprehensive cryptocurrency prohibition took place again after an announcement by the Ministry of Justice, almost followed right away by a renunciation from the office of the South Korean president.
It generally operated by means of a virtual bank account.
Shinhan Bank along with other chief banks, the second biggest in South Korea, endowed with local cryptocurrency exchanges with virtual bank accounts. Every trader otherwise an investor can make use of the virtual bank account to deposit or else pull out huge amounts of Korean Won devoid of having to utilize authentic bank accounts, which could be expensive plus prolonged. This is one of the aspects that increased the cryptocurrency trend in South Korea.
Well, the restrictions already have been carried out.
The government commenced observing gigantic assumption driven variations in the market of cryptocurrency ever since September 2017. With the aim of avoiding crimes, strategies to prohibit unidentified trading on domestic exchanges were accounted in December 2017.
The government has stopped the opening of virtual accounts, as well as the cryptocurrency traders, will not be permitted to make deposits into their virtual currency exchange wallets, except the name of their cryptocurrency exchange complements with their bank accounts.
The economic authorities have also applied for cryptocurrency exchanges to fix their KYC plus AML systems.