As a long-term crypto investor with experience in the South Korean market, I’m closely monitoring the recent regulatory crackdown on cryptocurrency trading in my home country. The uncertainty caused by these developments is concerning, especially given South Korea’s significant influence on the global crypto market.
Regulatory actions in South Korea are putting substantial pressure on cryptocurrency trading and exchanges, resulting in increased uncertainty among traders. This clampdown is part of the government’s efforts to tighten regulations under the upcoming digital asset law set to take effect later this month. The new guidelines may pose considerable challenges for certain altcoins according to industry experts.
South Korea Tightens Crypto Trading
The Financial Supervisory Service of South Korea announced on July 4 that a new system for enhancing surveillance and identifying suspicious crypto trading is being developed. Crypto exchanges have been instructed to provide data and relevant information to this system as the Virtual Asset User Protection Act takes effect on July 19.
The Digital Asset Exchange Alliance (DAXA) in South Korea has announced a thorough assessment of around 1,300 digital assets, lasting for six months, to guarantee adherence to the applicable legislation, despite refusing mass delisting.
Matt Younghoon Mok, a senior attorney and partner at Lee & Ko in Seoul, noted that the FSS guidelines might present substantial hurdles for altcoins that struggle to meet regulatory demands promptly. Transactions surpassing typical volumes and price ranges, sizeable deals, and sluggish execution are warning signs that could result in hefty penalties.
Why Global Crypto Market Recovery Could Delay?
As a market analyst, I’d put it this way: I’ve observed that South Korea occupies a significant role in the international crypto sphere. In fact, the Korean won has overtaken the US dollar as the preferred currency for crypto transactions. Around 10% of the South Korean population engages with digital assets. Notably, less-established coins tend to dominate trading volumes rather than Bitcoin in this market.
Based on the most recent findings from Korea Forbes, Upbit and Bithumb emerge as the leading cryptocurrency applications in South Korea. Nevertheless, there’s been a noticeable decrease in trading activity across the primary cryptocurrency platforms in South Korea, as indicated by Kaiko’s data.
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2024-07-04 13:37