Wonderful news for the crypto world coming from South Korea.
Two weeks ago South Korean Exchanges were raided by police and tax agencies, probably one of the main factors causing the recent dip in BTC's price and the entire cryptocurrency market capitalization in general. Rumors that South Korea was going to ban cryptocurrency trading were actually manufactured in an attempt to manipulate the market for trading purposes, as officials were caught making trading decisions based on insider knowledge of cryptocurrency regulations. If we take into consideration the fact that South Korea is a country with most of the trading volume, and keeping in mind that most cryptos are highly dependent on BTC as they are primarily traded with it, I think it's safe to assume that this news played an important role in causing the recent dip.
Both Bithumb and Coinone, which are two of the biggest exhanges in South Korea with massive trading volumes, were asked by tax officials to disclose paperwork. Officials of Coinone stated that police had been investigating their company for over a year, thinking what they do is gambling, and that they had been cooperating with the tax agencies and police. Authorities had also stated they were investigating banks that offer virtual currency accounts to these exchanges as it could potentially increase the risk of crime. Moreover, gambling seems to be one of the authorities' main concerns as well, given the recent surge in BTC's price which has been causing trading volumes to keep growing since last year.
Eventually, we have great news from South Korea. The South Korean government announced that six of the country's major banks will start providing services to crypto exchanges again by the end of this month. A new system is about to be installed, under which the government will require exchanges to share traders' data with banks. The FSC (Financial Services Commission) already shared details of the new real-name system for cryptocurrency accounts.
The new system will end the current practice of virtual account usage which allows anonymous trading of cryptocurrencies. These accounts are issued by banks for crypto exchanges’ customers to use to buy or sell cryptocurrencies at exchanges.
The FSC's announcement mentioned that Nonghyup Bank, Industrial Bank of Korea, KB Kookmin Bank, and Shinhan Bank will establish a system to provide full services from the 30th of January.
Regulation and Taxation
The real-name system is expected to block illegal funds from money laundering but will also provide the government with access to one's transaction history and blockchain assets in general, which will make it easier to tax users. Many people won't like this news, especially considering how the majority of traders got into the crypto world for its anonymity properties in particular, however it will help convince investors who haven't felt safe to invest in cryptocurrency yet, to jump in and buy. I believe such changes are inevitable in order to take the cryptocurrency market capitalization to the next level, and essential in order to provide a more secure environment for investors.
I strongly believe that the news from South Korea will cause the market capitalization to reach new highs. It's great news to me so I thought I would let the world know. If you are interested in the crypto game, maybe it's time to consider your moves.
Let me know your thoughts about those changes and news and how you believe this will affect the market!
Everything mentioned above is my personal, humble point of view. What does that mean? It means you can make of it what you wish. I'm not suggesting anything at all. If you do want my advice though, then ALWAYS invest less than you can afford to lose and NEVER invest more than 10% of your funds in anything. Needless to say, you should always do your own research and trust your own gut feeling.
Thank you for your attention!
I wish you massive profits!
