South Korea Proposes New Regulations Regarding The Country’s Crypto Market
Various cryptocurrencies took a hit today when South Korea announced new legislation aimed at regulating and controlling the crypto market. The proposed legislation would ban anonymous accounts and frequently monitor various cryptocurrency exchanges. After the United States and Japan, South Korea is the world’s third-largest cryptocurrency market.
The Wall Street Journal has also reported that the country is considering banning crypto exchanges altogether. However, the WSJ provided no timetable as to when such legislation would be introduced or the odds of its passage.
Regardless of the likelihood of the legislation’s passage, the news sent both bitcoin and Etherum’s prices tumbling. Bitcoin fell by roughly eight percent and is currently valued at $14,099.20. Etherum, which is the world’s second largest cryptocurrency in terms of market cap, saw its value fall by 3.76 percent and is currently priced at 734.11
Despite the hit taken by various crypto markets, the proposed legislation regarding the banning of anonymous accounts is similar to a proposal announced by South Korea’s Blockchain Industry Association. Fourteen of the organization’s member exchanges agreed that transfers between the Korean Won and the various cryptocurrencies should only be undertaken if the account holder’s identity had been verified.
The increase in the popularity of the crypto market has taken leaders in South Korea by surprise. Cryptocurrencies have become very popular in the country, but some fear the exchanges are not secure. Those fears were seemingly validated after Youbit, one of the country’s largest exchanges, collapsed following a $35 million hack earlier this month. This followed a hack in April where $72 million was stolen from Youbit.
That being said, there may also be a political element to these increased regulations. There are reports that North Korea has been using Bitcoin as a way of making money to stabilize the regime of Kim-Jong-Un. South Korean leaders may be hoping that the stricter rules will ensure North Korea does not gain influence of the South’s crypto market.
Eric is an avid tech junkie, gamer, and comic fan. When he's not working on his PC, you'll find him at your local comic book shop.