Korean Authorities Raids Upbit Cryptocurrency Exchange

LeGaulois

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Quote from: Msile on May 14, 2018, 12:47:25 PM

South Korea has been cracking down on the cryptocurrency industry to combat excessive speculation and illegal activities such as money laundering, part of a push by governments around the world to rein in digital currency markets.

Over the past few months Korean authorities have raided several smaller crypto venues, outlawed initial coin offerings and banned minors, foreigners and financial institutions from domestic exchanges.

Bitcoin dropped 3.6 percent at 11:21 am on Friday (11th May) after this.

excessive speculation, while banks are speculating with several million in different trades per second 24/24 using bots and let traders like Jerome Kerviel playing the Russian roulette with a trillion or more.
Do you see the irony, I am always amazed by banks and co. playing the victim card

squatz1

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No one really knows if this is really an issue as of yet, as there is an investigation which must commence in order to see if there is REALLY an issue -- which is why the word raid makes this sound like they were doing something highly illegal. Reading an article on it from a more reputable site (the merkle - https://themerkle.com/upbits-investigation-has-nothing-to-do-with-fraud-everything-to-do-with-pooled-liquidity/) Says that regulators may simply just be confused with pooled liquidity, as upbit could have been sharing their reserves with othersites

So we'll have to wait and see, that's the only way.

Indrawan77

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This news will tainted the crypto reputation, for sure the media for sure wont missed to cover the negative news about crypto, and the government will used this news to try to banned or make a tighter regulation and this won't be good for crypto, this news will caused tge price to plunged down

npredtorch

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Quote from: gentlemand on May 13, 2018, 07:55:51 PM

Quote from: npredtorch on May 13, 2018, 06:26:13 AM

One thing is assured, if it's a korean news it is guaranteed to affect the market whether it is negative or positive.

Which I've always struggled to wrap my head around. Korea is a closed market. No money can get in or out. In theory it should have much less effect than heaviness in other markets as other markets do cross pollinate.

I guess people are looking for reasons to panic these days.

And how did South Korea let these exchanges arrive out of nowhere and operate in total impunity without any tax or oversight? What kind of amateur hour government permits something like that to happen?

I wouldn't be surprised if they cause this too much roller coaster thing on crypto prices.
The fact is South Korea is still the third biggest market in the world for bitcoin trades. Open market or not doesn't matter, the effect is well describe on events like this.

Msile

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Activity: 658

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South Korea has been cracking down on the cryptocurrency industry to combat excessive speculation and illegal activities such as money laundering, part of a push by governments around the world to rein in digital currency markets.

Over the past few months Korean authorities have raided several smaller crypto venues, outlawed initial coin offerings and banned minors, foreigners and financial institutions from domestic exchanges.

Bitcoin dropped 3.6 percent at 11:21 am on Friday (11th May) after this.

gentlemand

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Quote from: npredtorch on May 13, 2018, 06:26:13 AM

One thing is assured, if it's a korean news it is guaranteed to affect the market whether it is negative or positive.

Which I've always struggled to wrap my head around. Korea is a closed market. No money can get in or out. In theory it should have much less effect than heaviness in other markets as other markets do cross pollinate.

I guess people are looking for reasons to panic these days.

And how did South Korea let these exchanges arrive out of nowhere and operate in total impunity without any tax or oversight? What kind of amateur hour government permits something like that to happen?

npredtorch

legendary

Activity: 1246

Merit: 1049

Quote from: Tankdestroyer on May 13, 2018, 06:52:24 AM

They probably haven't tried stealing customer funds nor market manipulation, it's just that I think they are taking the matter personally. They might have been alarmed to large volumes of crypto trading and many profits made by crypto users from it. the statement that made me think that they are really acting based on the subjective opinion of their government official is this:

Quote from: Prime Minister Lee Nak-yon link=https://coinpedia.org/news/korean-authorities-raids-upbit/

The barrage is alarming official including Prime Minister Lee Nak-yon. He says that cryptocurrency might corrupt the nation’s youngsters.

I think that's just normal behavior for a leader.
If you will subject your businesses (including the citizens) for a regulation I'd think it's only appropriate starting with the bigger and most known.
Also, it will be a good example for the lower level types to pursue & follow these rules.

crypto002

jr. member

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Sadly yes and this has casued market to go down again which was recovering after its tough time but I also believe those investors of upbit are real investor of bitcoin They will come back again and I hope the market will bounce back

Tankdestroyer

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Quote from: BarbusseH on May 12, 2018, 02:44:12 AM

How to prove this statement, and how to prove this malicious intent of the owners of the exchange, and not the technical or software particular qualities
of the equipment?

You don't need to prove anything, leave it up to investigators in charge of Upbit's case.

Quote from: npredtorch on May 13, 2018, 06:26:13 AM

I can't think any sort of illegal activities that an exchange can do except for market manipulation and stealing customer funds.

They probably haven't tried stealing customer funds nor market manipulation, it's just that I think they are taking the matter personally. They might have been alarmed to large volumes of crypto trading and many profits made by crypto users from it. the statement that made me think that they are really acting based on the subjective opinion of their government official is this:

Quote from: Prime Minister Lee Nak-yon link=https://coinpedia.org/news/korean-authorities-raids-upbit/

The barrage is alarming official including Prime Minister Lee Nak-yon. He says that cryptocurrency might corrupt the nation’s youngsters.

npredtorch

legendary

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Quote from: coinwizard_ on May 13, 2018, 05:13:53 AM

Sadly this caused another bear moment in the market, coupled with the movement of the mt gox bitcoins, the timing of these events is most unfortunate. We'll just have to hope that the authorities do not uncover anything so we can all resume profitable trading again.

One thing is assured, if it's a korean news it is guaranteed to affect the market whether it is negative or positive.

What do you mean to not uncover anything? Do you think that it is not just about the current issue?
I can't think any sort of illegal activities that an exchange can do except for market manipulation and stealing customer funds.

coinwizard_

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Sadly this caused another bear moment in the market, coupled with the movement of the mt gox bitcoins, the timing of these events is most unfortunate. We'll just have to hope that the authorities do not uncover anything so we can all resume profitable trading again.

BarbusseH

newbie

Activity: 193

Merit: 0

...The report says exchange was allegedly selling cryptocurrency to its customer without holding it in real time...
How to prove this statement, and how to prove this malicious intent of the owners of the exchange, and not the technical or software particular qualities
of the equipment?

coinpediaJordan

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https://coinpedia.org/wp-content/uploads/2018/05/Korean-Authorities-Raids-Cryptocurrency-Exchange-Named-Upbit.jpg

World’s largest cryptocurrency exchange Upbit, is raided by South Korean prosecutors. Bestowing to a prosecutor from the Seoul Southern District Prosecutors’ office, on Thursday and Friday the government has searched the exchange’s office.

Read news here: https://coinpedia.org/news/korean-authorities-raids-upbit/

Topic: Korean Authorities Raids Upbit Cryptocurrency Exchange (Read 163 times)