South Korean investors are upset by the recent ban on cryptocurrency trading. The country has an extensive crypto market but cryptocurrency trading isn't yet legalized. The government does not recognize digital coins as currencies or financial products, and vice chairman Kim Dong-Yu reiterated that it cannot guarantee the value of cryptocurrencies. Financial authorities in the country are discussing comprehensive regulations to curb illegal activities. This includes a ban on initial coin offerings.
The new law will prohibit all foreigners from trading cryptocurrencies in Korea. This includes both residents and non-residents. It also applies to "kyopo", or ethnic Koreans who have foreign citizenship. Nonresidents and minors are also prohibited from trading in crypto. Three government-owned banking institutions are conducting risk assessments on the 'big four' largest crypto trading platforms. The ban will apply to smaller exchanges.
South Korea has said it won't ban cryptocurrency, but that isn’t likely to change. According to the presidential office, a majority of the 297 members of the National Assembly must approve the move before it takes effect. It could take several months or even years to approve the move. It is nonetheless a positive sign that the future of South Korea's crypto industry will be bright. It is still unclear what the government's plans will be for the industry.
Despite the South Korean ban on cryptocurrency, the industry is booming. The country's regulator has stated that the bubble will burst later. Cedric Jeanson CEO of BitSpread (a bitcoin trading company), says that the new regulation represents a positive step. He argued that the country's regulators must oversee and control ICOs in order to protect investors. The South Korean government's decision isn't likely to hurt the economy, but he does hope to protect its consumers.
It is important you understand why South Korea banned cryptocurrency. The country's regulators expressed concern about crypto's risks and warned they weren't safe for investors. The government is also trying to minimize fraud and scams. Therefore, regulators in the country have banned both domestic initial coin offerings (ICOs) and cryptocurrency exchanges.
However, the ban doesn't necessarily mean that the industry is in good shape. The closing of nearly half of South Korea’s crypto-exchanges could open the door to monopolies and could cause harm for ordinary investors. It is important that investors remember that the ban was temporary. For now, there is no legal basis for it. Additionally to the ban, the South Korean government's most recent guidelines don't provide any guidance on how to enforce them.
FAQ
Which crypto currency should you purchase today?
Today I recommend Bitcoin Cash, (BCH). Since December 2017, when the price was $400 per coin, BCH has grown steadily. In less than two months, the price of BCH has risen from $200 to $1,000. This is an indication of the confidence that people have in cryptocurrencies' future. This also shows how many investors believe this technology can be used for real purposes and not just speculation.
What Is An ICO And Why Should I Care?
An initial coin offer (ICO) is similar in concept to an IPO. It involves a startup instead of a publicly traded corporation. A token is a way for a startup to raise capital for its project. These tokens signify ownership shares in a company. They're often sold at discounted prices, giving early investors a chance to make huge profits.
How does Cryptocurrency gain Value?
Bitcoin has seen a rise in value because it doesn't need any central authority to function. This means that no one person controls the currency, which makes it difficult for them to manipulate the price. Additionally, cryptocurrency transactions are extremely secure and cannot be reversed.
Statistics
- While the original crypto is down by 35% year to date, Bitcoin has seen an appreciation of more than 1,000% over the past five years. (forbes.com)
- In February 2021,SQ).the firm disclosed that Bitcoin made up around 5% of the cash on its balance sheet. (forbes.com)
- Ethereum estimates its energy usage will decrease by 99.95% once it closes “the final chapter of proof of work on Ethereum.” (forbes.com)
- That's growth of more than 4,500%. (forbes.com)
- Something that drops by 50% is not suitable for anything but speculation.” (forbes.com)
External Links
How To
How to invest in Cryptocurrencies
Crypto currencies are digital assets which use cryptography (specifically encryption) to regulate their creation and transactions. This provides anonymity and security. The first crypto currency was Bitcoin, which was invented by Satoshi Nakamoto in 2008. Since then, there have been many new cryptocurrencies introduced to the market.
Some of the most widely used crypto currencies are bitcoin, ripple or litecoin. Many factors contribute to the success or failure of a cryptocurrency.
There are many ways you can invest in cryptocurrencies. You can buy them from fiat money through exchanges such as Kraken, Coinbase, Bittrex and Kraken. You can also mine coins your self, individually or with others. You can also purchase tokens via ICOs.
Coinbase, one of the biggest online cryptocurrency platforms, is available. It allows users the ability to sell, buy, and store cryptocurrencies including Bitcoin, Ethereum, Ripple. Stellar Lumens. Dash. Monero. Users can fund their account via bank transfer, credit card or debit card.
Kraken, another popular exchange platform, allows you to trade cryptocurrencies. It lets you trade against USD. EUR. GBP.CAD. JPY.AUD. Trades can be made against USD, EUR, GBP or CAD. This is because traders want to avoid currency fluctuations.
Bittrex is another popular exchange platform. It supports over 200 cryptocurrencies and provides free API access to all users.
Binance is a relatively newer exchange platform that launched in 2017. It claims to be one of the fastest-growing exchanges in the world. It currently trades over $1 billion in volume each day.
Etherium runs smart contracts on a decentralized blockchain network. It uses a proof-of work consensus mechanism to validate blocks, and to run applications.
Cryptocurrencies are not subject to regulation by any central authority. They are peer-to–peer networks that use decentralized consensus methods to generate and verify transactions.