It seems crazy to me that there are still some countries out there that have not adopted laws to allow and support cryptocurrency exchanges. Just look at how it has transformed the economy of Switzerland and Estonia. This post will look at the fact that South Korea finally recognized cryptocurrency exchanges and issued laws to govern their operation.
South Korea finally jumped on the bandwagon and is now looking to set up this country as the tech and crypto center of Asia. South Korea, a long contrarian to cryptocurrencies, has stepped forward and embraced digital tokens.
The main concern that the financial regulators in South Korea had regarding cryptocurrencies was that it would be used to launder money. The first step to avoid that problem was to strengthen regulations and have a clear framework from which cryptocurrencies could navigate from.
Concern existed, but it was shared with the knowledge that the mainstream adoption of cryptocurrencies could benefit local banks and double their economic footprint in the country. Speculations were high and the desire to reach an agreement was always present.
Last year alone South Korea was responsible for a third of all Bitcoin trades done. South Korea compromises just one percent of the worldwide population yet it makes up for 30 percent of the industry. It was crazy to think that cryptocurrency exchanges were not regulated in this country.
You read that correctly, a country where Bitcoin regulation was strict and full of obstacles made one third of all the trades done by Bitcoin. Last December the citizens of South Korea also made over 17 percent of all ethereum trades.
The main reason behind the explosion of cryptocurrencies could be that the country in general is known to be very tech savvy, and that that majority of the trades were done by young people who are unemployed and see Bitcoin and Ethereum as a great investment.
Not only young unemployed people joined the cryptocurrency boom there is a great variety of residents of South Korea who invest in Bitcoin. Around the world cryptocurrency seems to be a fad for young entrepreneurs, but not in South Korea. People of all ages, young, housewives, working class, grandparents, everybody seems to be cashing in on Bitcoin and Ethereum.
South Korea is known to start trends in the economic market and what many experts in the field are commenting is that the wide acceptance of cryptocurrency in South Korea is soon to be followed by many other jurisdictions as it has with many other technology based products.
As with everything involving technology there have been some ups and downs. An exchange in South Korea recently got hacked causing a drop of 10 percent in Bitcoin worldwide. This led to many enthusiasts to abandon trading as it confirmed their fears that a hack that could make their money disappear a real threat.
Bitcoin was not affected in the hack just the demand for it. Crypto has fallen from the mighty throne that it held last December when it was valued at over $20,000 dollars, but interest by particulars and financial institutions in South Korea have not waned.
The complete opposite in fact, while everywhere else in the world analyst’s are worried how the fall of Bitcoin might decrease the interest of Bitcoin enthusiasts South Korea is confident in the power that cryptocurrencies hold.
The government has begun to make ambitious promises such as the goal to make South Korea the next crypto valley and take Switzerland’s cryptocurrency crown. Also, they plan to make South Korea the place for blockchain companies to open shop.
South Korea announced that they have stipulated that their blockchain budget to be one trillion Won. This sum of money is outlandish in a good way and it shows the amount of confidence that the government has in the technology.
The South Korean government has created a subdivision of their Financial Services Commision called the Financial Innovation Bureau to look after cryptocurrencies and blockchain. The government entity will also help in setting rules and regulations that may encompass any of these technologies.
South Korea is looking into the future and is the best example out there of a country who didn’t believe at first in crypto and has now adopted its legal framework to include it. It will be interesting to see what is next for them.
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