New cryptocurrency exchanges are developing in South Korea despite regulatory uncertainty due to strong demand and lucrative business models. Ten cryptographic platforms are expected to open in the first half of this year, including two run by companies listed on Kosdaq.
Despite regulatory uncertainty, new entrants are scrambling to start cryptocurrency trading in South Korea. "A growing number of companies specializing in information technology (IT), such as gaming and security, have announced their entry into the cryptocurrency market," said Business Korea on Monday.
Two companies listed on the stock exchange in Kosdaq, "accelerate the implementation of their crypto exchanges," notes the newspaper.
Nex G and Hanbit So New Cryptocurrency Exchanges Proliferate in South Koreaft are currently building security and anti-money laundering (AML) systems to carry out cryptocurrency trading. The two plan to launch their exchanges in March, reported the news agency quoting a manager of Nex G:
We plan to exploit the exchange called "Nex Coin" and we already created the company last week. We will implement all systems provided by a normal financial institution, such as anti-money laundering and security control systems.
"Under current e-commerce law, companies can manage a cryptocurrency exchange when they register it as a telemarketing business with a local government."
South Korea has four main exchanges of cryptocurrency and many small and medium ones. Bithumb has long been the country's largest crypto exchange in terms of volume. However, Upbit, supported by Kakao Corporation, claims to have exceeded its volume in December. The other main exchanges are Korbit and Coinone. The Digital Times noted earlier this month:
There are currently about 30 virtual currency exchange exchanges operating in Korea, and more than 10 additional exchanges will open in the first half of this year.
In addition to Nex Coin and Hanbit Soft, Zeniex and Komid will open more scholarships in the first
semester of this year. The first said it will be launched this month. Immediately, the homepage of the platform was paralyzed due to a
increase in access, according to Yonhap. "The web server was receiving over 100,000 people trying to access the site," Komid said.
The news agency pointed out that "the enormous income from virtual exchange commissions" is the main reason why many companies open cryptocurrency exchanges.
"In the case of Upbit and Bithumb, Korea's largest stock exchanges, average daily commission income is estimated at 3.6 billion won and 2.6 billion won, respectively. "
What do you think of these new exchanges launched in South Korea? Let us know in the comments section below.