South Korea has become one of the major players in Bitcoin trading so quickly.

Several various Korean exchanges have been emerging lately. As the ecosystem grows, the country's regulators are trying to control it. More specifically, following an International Monetary Fund meeting, the South Korean government wants to increase its oversight of cryptocurrency transactions. All of this is part of a major financial reform package that will affect the country in the years to come.

SOUTH KOREAN AUTHORITIES AND BITCOIN

It's undeniable that South Korea has become an integral part of all Bitcoin business activities in recent times. Bithumb, Coinone and Korbit are very popular exchanges when it comes to cryptocurrency. However, the country's government is introducing financial reforms at the national level. After sitting at the IMF to discuss opportunities and an action plan, it appears that the next goal of the government is to administer cryptocurrency activities in the country.

This step is somewhat expected after Bitcoin gets traction in a country. The South Korean government has alluded to the possibility of regulating Bitcoin several weeks from now. In addition, it is evident that something in the country must change from an economic perspective. IMF meetings are partly due to a desire to improve labor productivity. In addition, regulatory reforms are needed in many countries, including South Korea. The topic of Bitcoin regulation is also discussed.

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Though only a minority is interested in Bitcoin regulation, the result is still unpredictable. Fintech and digital currency excluded South Korea, but the government must intervene at the same time with potential risks. Maintaining a competitive financial market is the number one priority of the country's leadership today. This seems to suggest a possible lenient regulation, although many details still need to be talked about.

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Tracking Bitcoin transactions does not necessarily have to cause worry among consumers and traders right away. It is possible that local cryptocurrency exchanges are required to go at extra length, possibly by obtaining a license. We have seen similar steps introduced in Japan not long ago. Most of the exchanges have already acquired their new licenses, and normal commercial activity has been continued. South Korean regulators may adopt a similar approach, although no further confirmation.

Whether or not Bitcoin will be completely legal in South Korea remains unknown today. Government officials say this is an "economic axis in the financial sector". This is a rather vague statement, though it is generally rather positive. Again, there are other entities that recently stated that Bitcoin is not a money or financial product. It is clear that opinions are still divided in front of this at the moment.

Bitcoin Rates (October 30, 2017 15:30)
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South Korea is apparently a critical country for Bitcoin today. Government authorities should recognize that cryptocurrency-related transactions will help the country's economy. Whether or not this means we will see penalties or monopoly regulations remain undetermined. Strict AML and KYC systems had some unexpected effects. The strict regulatory framework for Bitcoin trading platforms further pushed exchange market in South Korea. Regulations validated the Bitcoin and as a result, the demand for Bitcoin has continued to rise despite the premium rate that is currently shown by South Korea’s top exchanges. It is obvious that an interesting future awaits Bitcoin in South Korea.