South Korea is next to Japan one of the countries where cryptocurrencies are extremely popular.
According to a survey conducted by the Central Bank of South Korea, up to 40% of young Koreans are enthusiastic about having cryptocurrencies. The willingness to invest in cryptocurrencies was expressed by 24.2% of Koreans between 20 and 30 years of age. In the 30-40 age group, this ratio was 20.1%.
It is estimated that over a million Koreans already use cryptocurrencies and their stock exchanges are responsible for 1/5 of global turnover. The Korean Bithumb stock exchange is in the top five of the largest stock exchanges and in the world.
The Korean government is just finalizing its plans for the cryptocurrency market in the country. The cryptocurrency exchanges will become fully-fledged and licensed financial institutions.
The new law has its advantages, but of course it has disadvantages. Negative features include AML's sharpened policy and the end of anonymity during the purchase / sale of cryptocurrencies, however, according to analysts, new regulations will also have a very positive impact on the industry, which can benefit large institutional and individual investors.
The new regulations force the stock market more emphasis on security, which is important especially after hacking attacks on Bithumb and Coinrail. Stock markets will have to meet a number of other requirements to obtain the appropriate license.
The new law is also to support the development of all decentralized projects.
The huge interest in Bitcoin in South Korea has long attracted the attention of the local authorities. At first, the Korean government even considered shutting down the stock exchanges and severe restrictions. This, in turn, encountered strong resistance from the Korean cryptocurrency community. More than 215,000 Koreans have petitioned the government against the strict regulations, forcing the authorities to change their policy, which was to focus more on ensuring trade transparency on local cryptocurrency exchanges rather than introducing any bans.