How it all started
With cryptocurrency trading showing a tremendous increase in the last couple of years, many South Korean traders have been asking questions about how the Government would regulate cryptocurrency trading.
In South Korea, the currency exchange rates are about 43% higher than the exchange rates in other countries. The market conditions, i.e., demand and supply have favored the hike in the prices. Even the biggest cryptocurrency price indexer CoinMarketCap has excluded the Korean cryptocurrency from the main indices as it would hamper the estimates.
The exchanges primarily go for the native currency ‘South Korean Won’ for exchange purposes. In fact, the big markets like Singapore, Hong Kong, and South Korea are well ahead as they provide profits with minimum risks. The South Korean currency exchange Bit Thumb has been biased towards Zcash rather than trading Bitcoins and Ether.
How far have crimes against crypto trading gone?
Earlier, cryptocurrency was not regulated by the government authorities that led to illegal trading and investments. The exchange crimes have amounted to approximately 637.5 billion dollars. In addition to this, government agencies have seized 1.7 billion dollars of illicit money from dozens of residents who kept digital currency hidden in electric wallets.
Measures took by South Korean Government to regulate cryptocurrency trading
Financial governing agencies are administering the economy by implementing new rules and regulations. Recently, the government banned entry of foreign investors to trade cryptocurrency via Korean exchanges. The ‘anonymity’ clause doesn’t apply anymore to the transactions. And now all individuals, organizations, and business enterprises will have to register their names with full proof identification.
The authorities have defined even the transaction limits. And several restrictions applied on the settlement services provided by the South Korean enterprises. All the measures are effective into consideration to prevent the economy from corruption and money laundering.
It is not wholly prohibiting the investors and organizations to trade in cryptocurrency. Instead, the nation is trying to make the process more transparent and accountable. Thus, it is right to say that South Korea’s leading step to carry on with the cryptocurrency trading is an appreciated move. The government taking action to regulate cryptocurrencies can assure that their intention is not to ban cryptocurrencies in South Korea as some have expected.