The Crypto Exchanges In South Korea Move To Mainstream Cryptocurrency Use
Here we state the factors influencing the crypto market in South Korea. Why are they being targeted? Read for more details.
The Crypto Scenario In South Korea
It has already become a major force in cryptocurrency trading and with a series of recent announcements, South Korea is all set to be on the path to becoming a crypto transaction powerhouse as well. Thereby it was seen in a report in the Korea Times that it states that Bithumb comes to be the country’s biggest cryptocurrency exchange as also Pay, the mobile payment service provider has inked a partnership agreement enabling transactions at 6000 business outlets across the country. Hereby along with a partnership with YeogiEottae, South Korea’s largest hotel booking platform had come with an agreement that customers can conduct transactions using cryptocurrencies on the site.
The Ultimate Goal
It was found that a Bithumb spokesperson had implied that to ensure that spending cryptocurrencies thereby comes as an easy method as spending fiat money or cash. Therefore, as South Korea’s internet giant Kakao has come to be an integrated crypto payment for 12,000 merchants on its platform. Therefore, it is subsequently found that the integration of cryptocurrencies into the mainstream economy could help mop up additional revenue for the government in the form of taxes or transaction tax.
It was therefore observed that after a retreat from strident rhetoric the recent set of announcements by government officials begin this year and for example, a government official has threatened to ban initial coin offerings whereas legislation about the ban was not passed. Later on, as it comes to be Choe Heung-sik the governor of the country’s Financial Supervisory Service had thereby quoted that it would certainly accept normal transactions that are by using cryptocurrencies as the legal status of currencies in South Korea remains to be unclear as regulators in the country have mostly focused their efforts on preventing its use in criminal activities. Making it mandatory for exchanges to comply with these regulations help with anti-money laundering laws.
Will It Make A Difference Surely?
Cryptocurrency has lately exploded in South Korea and therefore at one point, it has accounted for a major chunk of trading in three of the top five most valuable cryptocurrencies. Hence the example states that its theft in crypto markets was demonstrated as prices for Ripple’s XRP had crashed after coinmarketcap.com which is a website providing an average of aggregate crypto prices from multiple exchanges that too excluding South Korean exchanges from its calculations. Hereafter these developments have been leading to conclude that South Korea might become the first cryptocurrency-powered nation on earth.
It was noted in this scenario that speculative trading in cryptocurrencies is different from using them for daily transactions as it is true that South Korea’s move is promoting mainstream adoption of cryptocurrencies where the cash is still king and cryptocurrencies do not seem to have made a significant dent in transaction volumes in Japan.
The Reason As To Why South Korea Is So Important To Bitcoin Prices?
Moving on to the South Korean financial regulatory bodies has hereby indicated as per widespread reports that it would surely support the normal cryptocurrency trading thereby backpedaling from its threats where it is just a month before the crackdown on cryptocurrency trading. Hence the truth was that the bitcoin world’s collective sigh of relief is surely South Korea’s recent announcement having caused the uptick in Bitcoin’s price which is in recent days just as precipitous as the downturn was thought to have been partly brought on by the previous anti Bitcoin statements by the South Korean government.
The digital currency prices of course are notoriously volatile as these rises and recent falls could be attributable to many different things. It does seem that nonetheless, South Korea plays an outsized role in the fluctuations of cryptocurrency prices.
Here Is The Third-Largest Market
It is overwhelming to find that South Korea comes to be the third-largest market for bitcoin trades in the world just followed behind Japan and the US as reported by BBC. Thereby this small country comes to be home to more than a dozen digital currency exchanges as the demand there is so high as with digital currencies sometimes trade at a premium thereof as much as the 30% of above prices thereby in other countries.
Therefore, taking these facts into account they all point to the dramatic increase in interest in digital currency investment in recent years.
Finally, it is observed that in a response to the flurry of activity the government of South Korea has gone so far as to label the trend irrational as the government comes to step in threatening to ban all cryptocurrency and moving to shut down some exchanges.
Finally, To Conclude The Economic And IT-Related Links
Consequently, as the deep ties of South Korea to cryptocurrency are strengthened by the strong IT infrastructure across the country it also allows 14-fold increases in the number of cryptocurrency app users just in three months. It was therefore found that at the same time there is a slowing economy and rising rates of unemployment in recent years that have fuelled new interest in making money in innovative ways as for many South Koreans, it is just one of those ways that have been cryptocurrency investing.
It was then considered how closely involved many South Korean investors are in the cryptocurrency price and it’s no surprise that the broader world takes notice when the government threatens drastic measures. It is here that a loss of the investment of South Korea would necessarily have a major impact on bitcoin prices as well as those of virtually every other digital currency