Sunday, June 16, 2024

    South Korea Won’t ban Exchanges – Introduce new Reasonable Regulation

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    There seems to be a lot of confusion regarding the Bitcoin regulations in South Korea. More specifically, we all know there will be an emergency meeting later this week. However, there are seemingly no plans to ban Bitcoin or any other cryptocurrency. Instead, new KYC and AML requirements will be introduced for all local exchanges. None of these measures are invasive whatsoever, which is only to be expected.

    South Korea has quickly become the go-to region for cryptocurrencies. Ever since China decided to ban all CNY trading, South Korea quickly filled the gap. We have seen local exchanges generate a ton of volume for all of the prominent altcoins. If a ban were to happen, things would unravel pretty quickly. Luckily, it seems that is not the objective of the local government whatsoever. Or that is how it appears right now, at least.

    Everything is Fine in South Korea, for Now

    With the news regarding Friday’s emergency meetings between the government and exchanges, speculation runs wild. In most cases, such meetings won’t have a positive outcome. The last time a major meeting occurred was in China, and we all know how that ended. South Korea will hopefully be a different creature in this regard, although it is still too early to say. According to local sources, there will be no ban whatsoever, though.

    Instead, exchanges will have to adhere to additional KYC and AML regulation. More specifically, six new requirements will be issued. These guidelines are not overly difficult to adhere to whatsoever. Separation of fiat currency into a third–party account is perhaps the biggest challenge. More order book transparency can only be a good thing for platform users. For now, there appears to be nothing one should be even remotely worried about. We will know more on Friday, though.

    It is good to see these new regulations come into place. More specifically, once this hurdle is out of the way, nothing can stop further cryptocurrency adoption in the region. There is no indication the government will lift the ban on initial coin offerings, though. Nor should anyone expect that, as ICOs are still a very problematic industry all over the world. A very interesting future lies ahead for the cryptocurrency, that much is evident.

    Why South Koreans are going crazy over Bitcoin. Read here.

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