[The Fastest News and Issues about Cryptocurrency and Blockchain from South Korea]
Hello guys, I am a Journalist in South Korea.Transaction of Cryptocurrency in South Korea has been on a roller coaster. The volatility is relatively even higher as the 'Kimchi premium' and 'Inverse kimchi premium' phenomenon happen.
In the beginning of this year, Korean government has begun to regulate the Korean Cryptocurrency market, and there are many opinions and practical regulations about it. These series of events are directly or indirectly affecting the value of Cryptocurrency.
I’d like to summarize and share some significant information about Korean Cryptocurrency market from today and if you are an investor or future investor of Cryptocurrency or Blockchain, I suggest you at least to skim through this article for your better investment.
Why should investors or future investors of Cryptocurrency or Blockchain care about Korean News and issues?
1. 15~20% of total amount of Cryptocurrency transactions in the world is transacted in South Korea and it was caused establishing Kim-chi Premium* in Korean market of Cryptocurrency.
*Kim-chi Premium : Dramatic growth of Cryptocurrency transaction in Korea brought the price of cryptocurrency maximum 50% higher than the American price in South Korea. (Now there is not big difference since South Korean government starts to regulate crypto currency market in Korea.)
2. Now South Korean government has difficulty how to regulate Korean Cryptocurrency market and it causes many trials and errors which absolutely influences on price of Crytocurrency.
For example, When Korean Ministry of Justice mentioned about closing Korean crypto currency exchange, the price of Bitcoin fell 12%, and the government actually did not close after all.
3. Because South Korea has world best Infra of IT (Information Technology), South Korea would be market testbed for the Blockchain and there are actually many trials already by using the Blockchain technology.
News and Issues
1. Moody’s is on Korean Government side for regulating Korean Cryptocurrency market.
Moody's said, "It is positive for Korea's credit rating that the Korean government has put in place measures to regulate Cryptocurrency transactions to prevent Cryptocurrency speculation." We have mitigated the potential risk of Cryptocurrency and are able to improve overall financial stability. The Korean government announced in January that it will implement a "Cryptocurrency trading on real name system," which will allow customers to deposit and withdraw money only through their bank accounts whose real names have been confirmed. In addition, Moody's said, "The government's actions could limit Cryptocurrency speculation."
2. Chairman of Korean Financial Services Commission said "No worry about regulation”
"The government's goal is to ensure that investors are properly protected and that they are able to maintain a stable system to prevent illegal activities such as money laundering," said the finance minister.
3. Don Tapscott* believes South Korea would be a global leader of Blockchain.
Don Temcott said, "I can understand why the Korean government is so concerned about Cryptocurrency speculation but it is important to regulate very carefully.” He added, "Korea opened their eyes early to digital area, and I believe South Korea can make good use of the blockchain technology and become a global leader in this field."
*Don Tapscott (born June 1, 1947) is a Canadian business executive, author, consultant and speaker, who specializes in business strategy, organizational transformation and the role of technology in business and society. He is the CEO of The Tapscott Group, and was founder and chairman of the international think tank New Paradigm before its acquisition.