Setting the Record Straight on South Korea’s Crypto Stance
In the swirling sea of online chatter about Bitcoin, some rumors have surfaced concerning the South Korean government’s alleged plans to crack down on cryptocurrency trading. However, contrary to these unverified claims, South Korea is not looking to ban Bitcoin but rather to embrace and regulate it. This shift signals a clear intention to cultivate the burgeoning Bitcoin industry.
A New Regulatory Framework is Coming
Recently, South Korean Deputy Prime Minister Kim Dong-yeon shared a rather optimistic outlook on the local Bitcoin scene during a press briefing. He laid out the government’s plan to implement a nationwide regulatory framework aimed at protecting cryptocurrency investors while also ensuring orderly market growth. Expect stricter Know Your Customer (KYC) and Anti-Money Laundering (AML) policies to lead the charge in enhancing consumer protection.
No Crackdown in Sight
It’s important to highlight that the government’s strategy is aimed at fostering a safer trading environment rather than initiating a heavy-handed crackdown. Kim pointed out the folly of enforcing impractical regulations—such moves could push traders into unregulated waters, making it far harder for authorities to maintain oversight. Instead, the administration is crafting policies intended to distribute trading volume across more exchanges, particularly as a few dominate the market.
Market Dynamics
As it stands, Bithumb, Korbit, and Coinone combine for over 90% of the trading volume within South Korea, with Bithumb surprising everyone by handling more trades than the KOSDAQ, the primary stock market in the country! With these numbers, spreading the load has become a top priority.
Taxation and Future Developments
The subject of taxation on Bitcoin trading is also on the table, though Kim confirmed that these new regulatory frameworks would not roll out in the latest tax law amendments for 2018. Nevertheless, the discussion around taxation policies demonstrates the government’s commitment to formalizing Bitcoin within its economic ecosystem.
The Financial Institutions Are Betting on Bitcoin
South Korea’s financial sector is not sitting idly by during this crypto renaissance. For instance, Shinhan Bank has made headlines by developing a Bitcoin wallet and vault service aimed at securing its customers’ investments. Given that Bithumb suffered two significant hacks this year alone, the move towards a secure, insured storage platform is a welcome development for investors wary of this volatile landscape.
Growing Influence on the Global Scene
As it stands, South Korea holds nearly 7% of the global Bitcoin market share. The acceptance of Bitcoin by major banks like Shinhan is poised to inspire both seasoned investors and curious newcomers alike to dive into this digital currency world, potentially increasing South Korea’s market presence dramatically going forward.
+ There are no comments
Add yours