Topic: New regulation in South Korea has forced several exchanges to close (Read 393 times)

Exchange platforms and local wallets will be the number one target of the government in case they want to put a tax on cryptocurrency because it's their one and only choice. Luckily, at this moment, our country doesn't have any taxes on crypto and even in local wallets but I'm sure that they're working on it right now. But still, cryptocurrency is allowed in the country, let's say that it's still a good news rather than implementing a crypto ban in the whole country that puts their investments in danger.

Bad news, but they are still allowing their citizens to trade cryptocurrencies albeit with various restrictions unlike countries like China who are outright banning them instead of trying to regulate them in different ways.

This news will only affect domestic traders in South Korea primarily in my opinion. Exchanges should be prepared for these scenarios in order to survive in this competitive market.

Of course it will always in favor with the government so if such exchanges are operated illegally, then they will be force to close their sites. For me, it might be a big hassle for thousands of traders residing in South Korea but i know it will be for their own security. And we can assure that after this operation, what's left are those legit and reliable exchanges. If these operators don't have negative motives, then they can easily comply with the requirements.

Since it was first introduced in 2009, bitcoin has continued to grow into a digital asset. Bitcoin which was initially widely opposed, now many countries are starting to open up opportunities for cryptocurrencies to grow. Of course, by starting to finalize various regulations to ensure the safety of the parties involved.
 
The attitude of each country in responding to the presence of cryptocurrencies is still diverse. Switzerland in February, openly accepted crypto as a means of payment. However, there are also countries that are still working on the rules for the development of the crypto industry.

South Korean regulator Financial Services Commission (FSC) chairman Eun Sung-soo has warned that all cryptocurrency exchanges in the country could be shut down. He said South Korea currently has around 200 cryptocurrency exchange platforms.

Eun explained that cryptocurrency exchanges must be registered with the FSC, under the revised Special Funds Act.

un asserted, cryptocurrency is not a currency. The South Korean government, he continued, has repeatedly warned investors that the price volatility that often occurs in the crypto world can be dangerous for investors.

However, on the other hand, Eun revealed, investors can also benefit from investing in cryptocurrencies. The plan is that the government will also impose a 20 percent tax from February next year.

Meanwhile, India does not close all options in terms of cryptocurrencies, including the use of blockchain technology. This was conveyed by Indian Finance Minister Nirmala Sitharaman last month.

Shitaraman said people would be given adequate places to experiment with blockchain, bitcoin and other cryptocurrencies. According to him, the Government of India is currently preparing the cabinet notes.

The plan is that the Government of India will allow a number of places for people to experiment on blockchain and bitcoin. However, Shitaraman revealed, what kind of formulation for the development of cryptocurrencies is still in the brewing stage.


https://www.republika.co.id/berita/qspwy1368/tarik-ulur-regulasi-kripto-di-berbagai-negara



So, I don't think this is the end of cryptocurrencies.

regulations made in a number of different countries.

What is the point in having close to a hundred cryptocurrency exchanges in a small country like South Korea? Small-sized exchanges are more vulnerable to hacking and at least some of them may be operated by shady characters. The regulations are a bit strict, but the government had given enough time to the exchanges. With some effort, it was possible even for the smaller exchanges to complete them ahead of the deadline. If they were not serious about it, then it is their problem. No point in blaming the government here.

With the amount of exchange fraud happening in South Korea by the unscrupulous exchange operators and the massive increase in reports of fraud by retail traders, I'd say the regulations are overall a good thing.  It will increase confidence in crypto and cut down on bad actors.  In the short term, it will restrict competition as the largest exchanges can afford to comply with the regulations quickly.  It's a shame there hasn't seemed to be enough forewarning to allow more exchanges to comply by the deadline.  They could have handled that aspect better.

This seems astonishingly backwards and counter productive for South Korea. This is not only going to send the exchanges away to nearby countries with lower regulations but I doubt anyone will ever fully trust South Korea with anything crypto- related in the future. Oh well, I say they are going to pull an India and take it all back when they realise how big crypto- and especially Bitcoin will become.

I think that the latest price movements are related to this new regulation. While China has made similar moves in the past, SK is much more influential as there is a huge amount of trade, particularly if you look at the size of the country and the population. Part of it has to do with the fact that many you Koreans just cannot have access to a home of their own unless they belong to the top 20% of students or wealthy families.

Yes, talking about Korea has created many problems for cryptocurrencies like bitcoin in the past, but I think they will end that soon. I wonder if this affects Koreans using foreign exchanges. outside or not, ... if not, I guess instead of shutting down the exchange should look for a license to operate in other countries. And it's getting harder and harder to stay in business while it's up and running. Things will become restrictive and the law will intervene.

Wow, first this, and today the central bank of China announcing that crypto operations are illegal. Things aren't looking good in two countries where cryptos are quite popular. Tough regulations are better than outright bans, but they can still have a major negative impact. As for $2135 of profit, the crucial data I can't see is per which period? Per month, per quarter of the year, or per year? These are all very different limits, and honestly, if it's per month, it might not be that tough, especially if it's zero below this sum. But I'm more into progressive taxes. After such bad news, I think Bitcoin is doing fairly well. I hope we won't see a significantly more serious deep, though.

And as well as impose a hard punishment for those that won't comply to the mandatory regulation of South Korea. It's their way to control and regulate since there's massive money and profits that they can take from forcing exchanges to follow them.
But they have to weigh things and if most of these exchanges won't comply and will just start their new office offshore, it's going to be a big loss on their country.

Crypto has been eyed for so many years now by the government not only in South Korea but almost every country in the world.

The government is trying so hard to get a grip on the cryptocurrency community. The legal status of crypto in one's country has its consequences. It's a matter of giving and take situation wherein the citizens can benefit from the opportunities offered by crypto, and at the same time, the government will benefit from it too by means of imposing certain rules and policies to be abided by the citizens such as paying proper taxes.

By doing this, the essence of crypto being decentralized is slowly being neglected. Although it's still up to the people to whether use platforms such as exchangers that use KYC or not. Privacy isn't much more of the people's concern nowadays anyway. But yeah, this isn't a piece of nice news given that a huge percentage of tax will be mandatory to be paid by the investors and traders that are earning income thru crypto.

Probably a barrier in understanding them since we've got used to our European way of doing things and we appreciate them only for the things that are missing here, all the way ignoring the problems they have that we don't experience. I've never been to China or SK, but I've been to Japan and to be honest, it was quite a disappointment from what I've expected, it's a far stricter country than what the net says, by far more rules on anything, and many more things some that will make a foreigner feel really uncomfortable.
This need for rules, their way of making rules to prevent something from happening in the first time, unlike us Europeans who make rules to prevent something from happening again the third time is maybe dictating their policies. I have seen this with the covid response, while people in Europe are fighting over the requirements to wear a mask I've never seen such news there, nor against the rules, it's probably their mentality, a society that is built only on rules and need rules for everything.

To get a better picture of this we would need probably to gauge the response from people in those countries, what they think of those regulations, how many are against, how many are for them, but there is a complete lack of information, we can't even get a list of those damn exchanges.

So with the banning that happens in South Korea, people will search for decentralized exchange and leave the centralized exchange so they do not have to worry if the government closes the exchanges anytime. They can still trade and make money while they can convert their profit into their currency. The government can do anything to make sure their people follow their rules and if necessary, they will force their people to KYC with full requirements.

If not total control what else could it be! This is the only sure way they can dip their claws in the crypto space, almost everyone has a bank account or will do one thing or the other with bank, forcing exchange to partner with banks is the smartest way to get control over the crypto activities in that country.

That's good to know, because all those billions of billions that will be lost in case 40 of the supposedly 60 crypto exchanges that operate in that country are closed seem to have served very well to create a FUD, along with the Evergrande scandal in China. It may just seem that way to me, but it seems that this part of the world constantly has some problems when it comes to cryptocurrencies (I mean Japan as well), because they have been regulating this market for at least 4-5 years, and as if they are constantly spinning in an enchanted circle.

I would expect that from corrupt politics, inefficient bureaucracy, but not from countries like South Korea or Japan - I do not hear that there are such problems in Germany or Switzerland.

Are you confusing South Korea with North Korea? The OP referred to the South, as the new law is applicable there. No cryptocurrency exchange operates in the North. However, North Korean hackers have been accused of hacking many of the cryptocurrency exchanges which are based in South Korea and Japan in recent times. And it is impossible to take any legal action against them. North Korea is already under all sorts of sanctions and embargoes. It is not possible to impose any new restriction or penalty upon them.

Centralized exchanges are potential points of failure, which is why bitcoin is decentralized, it is inevitable that something like this keeps happening all over the world as governments either want a piece of the action and want heavy regulations so they can get taxes out of all of this or they want to reduce the speed at which bitcoin is expanding, and they plan to use this type of regulations to try to regulate bitcoin to death.

It seems to be really very small exchanges that will not continue. Otherwise, many users would have already received an email and would certainly have told us about it here in the forum.

https://www.reuters.com/technology/over-60-skorean-crypto-exchanges-set-suspend-services-next-week-2021-09-17/

I also think that we should no longer worry too much about the market being affected by this. There are only two days left and most people should have cashed out already. (Although some exchanges will certainly continue illegally  ).

I've searched a lot for that list too but seems like everyone is just pushing numbers without naming those exchanges.

Anyhow, if this helps, 4 of those granted the license are : Upbit, Bithumb, Coinone, Korbi.
There are 28 others who have been granted security certificates that will allow them to keep running but without having a won pair and accepting deposits, again no complete list as I haven't managed to find one:

Anyhow, the newspapers I've read mentioned that the big four make 90% of the volume, so the hit will not be that hard, 10% volume lost which might actually migrate to those is not a matter of concern.