South Korea has over the past few years become a hub for investments in cryptocurrency. Almost a third of the country’s population living in Seoul is surveyed to be investing in popular cryptocurrencies like Bitcoin or Ethereum. The country saw a huge potential in the market especially with various provisions and new coins to delve into. Cryptocurrency is going headstrong with some service binding portals also having rewards.
The growth of cryptocurrency in South Korea is an outcome of proper education upon the market and its workings. South Korea is getting so evolved with the situation of the cryptocurrency that the government plans to launch a cryptocurrency of its own named S-Coin. Keeping in mind the foothold cryptocurrencies had gained, few regulations to curb the blockchain process were introduced during this period. For a nation that is adaptive to the cryptocurrency wallet for a vast majority, what do these new rules mean?
- The Financial Service Commission levied new rules to tackle illegal activities including cases of money laundering. Implementation of this makes keeping identity anonymous difficult which hampers the investor market.
- The main concerns it had with cryptocurrency is that it dealt with vast amounts of money that were transacted around the world. The new laws imply that all trade and transactions thereof can only be processed for accounts with real names and those with linked bank accounts.
- The law makes the import of a majority of cryptocurrency from China harder. Foreigners under this new regulation will not be able to open new accounts which further slowdowns the economy.
- Verification of additional information when linking to cryptocurrency exchanges will be put into action. Identity checks are at the crux of this new change to eradicate illegal activities. Anonymous transactions as a possibility are ruled out under such circumstances. This is a big blow in the cryptocurrency market.
- As per the new laws, if banks suspect any illegal transaction then they are liable to submit a report at the earliest. This means that if an account holder withdraws more than $10,000 a day then they will be under the radar of the bank. There will be a heavy investigation and probing done.
- The new rules have jittered the market a bit. The prices will be seen to fall until further regulations and laws are established clearing it.
The cryptocurrency market is habituated to major price swings and with the regulations, it is sure to have an effect that needs tracking.