Korean Regulation Fails to Shake Bitcoin Market But Could Wipe Out Some Exchanges
After this, South Korea's regulators announced their emergency measures for cryptocurrencies, this bitcoin market breathes the relief of relief while a blanket ban has not been adopted and other minor restrictions remain, and due to the dominance of virtual bank accounts, the exchanges A serious challenge is being presented.
Bitcoin Market Released'
This South Korean government had organized an emergency meeting on Thursday to adopt some measures to regulate the cryptocurrencies market. These measures were announced to the public on the same day.
These regulators said from the beginning that their purpose is to prevent the overhauled cryptocurrency market. Although it announcement had no major impact. According to the investor of Herald Corporation:
This market feels relieved because a blanket restriction recommended by the Ministry of Justice was not adopted.
This is the news of the past week. Bitcoin.com has reported on South Korea that Justice was instructed to lead a new task force which is to lead further rules. This Ministry of Justice is considering strict steps including the total restriction on cryptocurrency trade, which was not adopted in the emergency meeting.
Meeting notes leak
About 2 hours and 40 minutes ago, some meeting notes were leaked and posted online since this last announcement of the government. "The online community posted photos of conference material at 11:55 am," said Hankyung Daily. However, these leaks are not the last version of document regulatory measures and some points were not adopted on them. In spite of this, the Prime Minister cited the leak, "It is very shocking and unacceptable to me."
The final announcement of these regulators was done through the Office of State Planning and Coordination Center. These offices participated in a meeting at 10:00 in the morning on Thursday, Korea by the Deputy Ministers of each Ministry and sent an email to the press at 2:37 p.m.
During its actual announcement, the cost of Bitcoin only increased from 18.158 million to 7% and 19.35 million from Korea to 5:20 pm before it was won in Korea.
Bithumb responded to banning foreigners and minorities'
This Korean regulation can fail the Hit Bitcoin market but wipe out some exchanges. The last resort fixed by regulators includes "Foreign account holders and minors have been prohibited from opening a new account and those who have already been Are cryptocurrencies only, they are not allowed to make extra purchases”
It is the country's largest Bitcoin exchange at Bithumb, an official told on Thursday: These latest measures [on minors and foreigners] will not have much effect on us because we are already very cautious with minors and foreign investors. But they can harm small and unorganized platforms that allow teenagers to trade in virtual currencies.
Clampdown on virtual bank accounts could not force some exchanges out of businesses
These measures are also involved in preventing the banks from joining activities related to cryptocurrency and prohibiting virtual bank accounts. Bitcoin.com reported for the first time on Wednesday.
It is unconstitutional about the clampdown of the government monitoring the cryptocurrency market, because banks are asked to stop issuing virtual accounts for digital currency exchanges, the investor has written. An official at a crypto exchange told the publication:
It is disturbing because the use of virtual accounts was a government initiative, we were close to signing a contract with two major banks for virtual account services, but yesterday morning they told us that they could not proceed with this deal. If all banks close their virtual accounts for cryptocurrency platforms, then these platforms will exit the business due to lack of options.
These news outlets said that there can be other ways to make money transfer for trading in cryptocurrency, but most transactions are done through virtual bank accounts. A Bithumb official declared:
They are reviewing alternative methods even if we cannot use virtual accounts, then we can ensure that there is no hindrance to opening or transacting a new account.
According to Hankyung, according to the measures announced, it was not necessary as before the Ministry of Justice and the crypto markets indicated, "The government announced that it will prepare additional measures."