We thought for ages what will the South Korea do to the cryptocurrencies, but finally they restricted its regulations. So, let’s try to think about what does this mean for the market of cryptocurrencies.
This week, the South Korean crypto regulations, everyone was talking about for the last month, got their power. Rumors regarding banning cryptotrading in this country was filled in headlines of the majority of financial publications. As it appeared later, this information was false, anyway, it took the time to affect the trends on the crypto exchange course. Bears began to press the currency and people started talking about the bitcoin fall.
The document on the new South Korean rules regarding crypto market was released on January 23. It is aimed for restricting the misuse of the market itself and money laundering in the sphere.
For instance, Suspicious Transaction Report will be submitted to KoFIU every time when the system finds suspicious transactions. In case someone transfers 10 million KRW every week or even per day, it will be investigated.
However, the new regulations are not about only money laundering. They will be used for ensuring that users’ money is protected and Koreans won’t lose their money due to scam exchanges.
The crypto guidelines also state that banks and other institutions of the financial sphere have to share any information about suspicious activity. Lack of transparency is a great problem now and South Korea tends to make the crypto business clearer and safer.
The new rules will affect the South Korean crypto market for sure, but the hype around it is a bit overestimated. A Bithumb official representative stated that the coin transaction process would not be changed, so users will continue opening deals with bitcoins the way they always did it.
At the same time, tighter regulations will possibly strengthen the sector. Officials believe that this will lead not only to increasing transparency, but also to a great boost of the crypto market.
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.