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South Korean Exchanges Are Barring Foreign Residents from Trading | #VentureCanvas

Ashour Iesho | Bitcoinist


Several South Koreanexchanges have announced that they will ban foreign residents from tradingcryptocurrencies.


Tighter Cryptocurrency Regulations

Tighter Cryptocurrency Regulations

The South Koreangovernment was the cause of major turmoil in the global cryptocurrencymarket as rumors spread that they were planning to ban cryptocurrency trading across the country. Soon after the news was released, the total cryptocurrencymarket valuation dropped by almost 50%, causing major financial losses for a lot of traders worldwide.

South Korean Exchanges Are Barring Foreign Residents from Trading | #VentureCanvas
South Korean Exchanges Are Barring Foreign Residents from Trading | #VentureCanvas

Later, government officials stated that a digitalcurrencyexchange ban is only a potential measure for enforcing regulations. Since then, the cryptocurrencymarket has stabilized at a valuation around $620 billion after having previously fallen to $428 billion. The new regulations are aimed to curb South Koreanexchanges from allowing unverified accounts to tradedigital assets. Exchanges that do not fully comply with KYC/AML procedures might also be banned by the new regulations.

Foreign Residents Banned from Trading

Foreign Residents in South Korea Banned from Trading

South Korea isn’t the only country that has regulated cryptocurrencytrading. In late 2017, Chinese regulators forced major exchangesto shut down their operations. The closure of Chinese trading platforms caused a mass exodus of Chinese traders to other exchanges based in South Korea, Japan, Singapore and Hong Kong.

A recent article by Trustnodesreported that one of South Korea’s major cryptocurrencyexchanges, Korbit, would ban foreign residents from tradingcryptocurrencies. The reportstates:

If you are not a Korean citizen, the KRW deposit to the domestic virtual currencyexchangewill be stopped when you switch to the new KRW deposit method in January. It applies to both domestic residents and non-residents.

The article suggests that regulators will also plan to limitcapital flights through cryptocurrency to $50,000 like capitalcontrols. Experts also believe that the new regulations in South Korea may also force western cryptocurrency corporations to stop their operations in South Korea or even completely leave the country. Analysts believe that more cryptocurrencycompanies might move from China and South Korea to Japan, a country with more favorable cryptocurrency and blockchainregulations.

What are your thoughts on South Korea’s new cryptocurrencyregulations? Do you think that foreign citizens should be allowed to tradecryptocurrencies in South Korea? Let us know in the comments below!


Images courtesy of Pexels, Pixabay

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