South Korea Begins Enforcing Sensible Regulations; More On The Way
A flurry of crypto news continued to flow out of South Korea over the weekend, a week after the market was rocked by exaggerated regulatory news. Having been radically misinterpreted by the market, panic selling was triggered en masse, which saw prices of almost all top 100 altcoins dive by 30-50 percent.
Indeed, the South Korean government had closed exchanges that violated laws requiring domestic exchanges to stop accepting anonymous accounts on to their crypto exchange platforms. This was part of the enforcement of more dignified requirements like KYC and AML.
These new requirements, according to updates from Korbit over the weekend, are being implemented by the month’s end, meaning that “the current KRW deposit method will be terminated by the end of January.” Korbit is the third largest crypto exchange in South Korea (behind Bithumb and Coinone).
In messaging their clients, Korbit also revealed that:
Non-Korean nationals, both resident and non-resident, will not be allowed to deposit KRW at any domestic cryptocurrency exchanges when the new KRW deposit method is implemented.”
This is consistent with the South Korean government’s regulatory plans that were leaked in mid-December. One of the four areas of focus related to banning underaged and foreign investors from trading on domestic markets.
These regulatory measures appear a sensible step that will help legitimise virtual currency, for they mitigate against financial crime. This is a far cry from what many last week misinterpreted as a total blanket ban on trading Bitcoin and altcoins alike – despite South Korea boasting the world’s third most active crypto market.
This hysteria was prompted by inappropriate comments by the Minister of Justice, Park Sang-Ki, who loosely disclosed that the government is going to “ban all crypto,” despite the bill regarding crypto regulation still being in the drafting stage.
Demonstrating trust in the longevity of cryptocurrency in South Korean was OKCoin, for news circulated yesterday that the Chinese cryptocurrency exchange is in fact planning to move their entire operation to South Korea.