Dec 21, · Bitcoin Vault, a cryptocurrency also known as BTCV, is seeking to make a foray into the Asian market with its new security system designed to . Jul 15, · South Korea is considering reclassifying cryptocurrencies as "goods" rather than currencies, meaning bitcoin would be subject to tax rates as high as 20 per allcryptocoins.de: Anthony Cuthbertson. Apr 03, · From January 6th to January 16th, the price of Bitcoin to Korean won tumbled from a high of a US-equivalent $25, to $13,, according to Korbit. It .
Korean market bitcoin9 Exchanges to Buy Bitcoin & Crypto in South Korea ()
The overall unemployment rate is just 4. Youth unemployment has hovered around 10 percent in Korea for the past five years. In this highly educated economy, it can be hard for young Koreans to distinguish themselves from their peers.
Nearly 70 percent of all Koreans ages 25—34 have a post-secondary degree, the highest of all Organisation for Economic Co-operation and Development OECD countries, and a high school degree is nearly universal. Even if a young Korean does have disposable funds, investment opportunities are scarce, he adds.
And interest rates for savings accounts are rarely more than a few percentage points a year. Mass interest in cryptocurrency within South Korea began in earnest in fall , according to trade volume data from Korean cryptocurrency exchange firm Korbit. Oh invested in early , timing that likely allowed her to profit more than the average Korean trader. Yun began trading in summer when the market really started heating up. And you start to feel some jealousy.
Teens and young adults spend around four hours a day using mobile phones in Korea. Nearly every Korean home has internet access, and 88 percent have smartphones , the highest percentage globally. Such an abundance of connectivity allowed potential traders of all ages to learn about the craze and hear about the insane amounts of money one could make on trading.
Cryptotrading clubs, where people can meet like-minded traders and share tips, popped up at many Korean universities. Thanks in part to the frenzy, some coins cost up to 51 percent more in Korean markets than anywhere else. But then came the crash. New regulations against cryptocurrency trading, particularly ones from a worried South Korean government , helped usher the fall.
He is a third-year student at Kyung Hee University, a prestigious college in Seoul. He estimates 70 percent of his friends who traded crypto lost money. The extreme fluctuations wreaked emotional havoc on many traders, many of whom had invested much their entire life savings. When Bitcoin fell by 10 percent in January, traders shared photos of computers, sinks, bathtubs, and doors they furiously destroyed.
And this could happen in So, while many South Koreans appear to love cryptocurrencies , their politicians and regulators are afraid of their impact. Everyone from the prime minister downwards have expressed their concern over the speculative mania that Bitcoin and others have spawned, calling them dangerous. Although this price premium has receded, policy makers are still concerned. A document published on the 23 rd on January stated that South Korean regulators would only allow people to trade cryptocurrencies from verified bank accounts at the beginning of Jan.
In the document, numerous countermeasures were proposed to help reduce the chance of cryptocurrencies from being exploited for illicit activities. These include things such as crime, money laundering, and even tax evasion. In spite of the upcoming changes to the cryptocurrency market, it was business as usual for traders and the price of Bitcoin. The use of the proposed rules came after a number of confusing messages were sent from South Korean regulators.
This ambiguity of the market scared off investors earlier in December last year. The trade for Bitcoin in Korean won stood at a total of approximately 4 percent in December, , according to the site Crypto Compare.
Despite those sinking proportions for the Korean won, the new rules set out by South Korean regulators are set to make a broader impact for investors, stated by Hosp. Things are taken from something small and then extrapolated into something huge. Following this move, Japanese regulators in verified the legitimacy of several crypto exchanges, and directed those exchanges to improve their security and KYC protocols. Due to these reasons, the central bank of Korea has prevented its staff from trading these virtual coins, especially during normal working hours.
The trading center in South Korea definitely pulls its fair share. Among the major currencies, the USD was the only currency to surpass the Korean won in trades as of December It was also the number 1 currency for trades in Ethereum, which is the second largest token by capitalization.
However, the value of the won has declined significantly, amid tough talk by South Korean regulators. After a ban on initial coin offerings ICOs in September of , regulators banned several local cryptocurrency exchanges and allowed others to operate under stricter standards. While a blanket policy is in the works, regulators are taking measures to prevent things like money laundering or other illegal activities. As of January this year, the country has made anonymous deposits and virtual bank accounts illegal.
It forced lenders to report suspicious traders, including those that withdraw over 10 million won per day. Regulators also banned people who are under 18, foreigners, and institutions from domestic exchanges. The key worry for investors is the closure of major currency exchanges in South Korea. This would make it much harder for Koreans to buy these virtual assets, which would curb a key source of value for the coins.
This came after news that the justice minister of South Korea restated his proposal for a ban on exchanges. The majority of investors outside of South Korea are not aware that the cryptocurrency exchanges will be asked to supply details of any transaction that goes above a certain limit. This information will then be forwarded to the relevant South Korean authority.
Holding on to these cryptocurrencies for savings does not mean that investors will be liable for taxes. Authorities in South Korea have asked exchanges in their nation to implement a system that records transactions. This system holds information on transaction amounts for tax investigations. It could be said that the approach for of the South Korea government is a positive sign for crypto traders within its borders.
The government has changed its stance from banning the coins altogether to a more relaxed bill of regulations. However, this will make it more difficult for investors to move a large sum of cryptocurrencies in and out of exchanges. This proposal will need to be approved first by other ministries, as well as parliament. A petition was launched that opposes the measure on the prime ministers website, and has gathered more than , signatures.
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