South Korean crypto ban caused a stir among investors. Although the country has a large cryptocurrency market, trade in cryptocurrency is not yet regulated. The government does not recognize digital coins as currencies or financial products, and vice chairman Kim Dong-Yu reiterated that it cannot guarantee the value of cryptocurrencies. Financial authorities in the country have been debating comprehensive regulations to curb illegal activities, including a ban on all initial coin offerings (ICOs).
All foreigners can no longer trade cryptocurrency in Korea under the new law. This includes both residents and non-residents. It also applies to "kyopo", or ethnic Koreans who have foreign citizenship. The government bans minors as well as non-residents from engaging in crypto trading. Three government-owned banking institutions are conducting risk assessments on the 'big four' largest crypto trading platforms. Smaller exchanges will now be forced to abide by the ban.
South Korea announced that it won't ban cryptocurrency but the ban is not likely to be implemented right away. The presidential office stated that the move must be approved by a majority (297) of the National Assembly members before it can take effect. It could take several months or even years to approve the move. However, this approval is a positive indicator for the future growth of South Korea’s crypto industry. It is still unclear what the government's plans will be for the industry.
Despite the South Korean cryptocurrency ban that was recently implemented, the industry continues to thrive. According to the country's regulator, the bubble will burst sooner. Cedric Jeanson (CEO of BitSpread), a bitcoin trading firm, believes that the new regulation was a positive step. He argued, however, that the country's financial regulators have to monitor and manage ICOs in order for investors to be protected. The South Korean government's decision doesn't seem likely to cause any economic harm, but it will help protect its consumers.
It is important to understand the reasons South Korea has banned cryptocurrency. The country's regulators expressed concern about crypto's risks and warned they weren't safe for investors. The government wants to reduce fraud and other scams. Therefore, regulators in the country have banned both domestic initial coin offerings (ICOs) and cryptocurrency exchanges.
However, the ban doesn't necessarily mean that the industry is in good shape. The closure of over half the South Korean crypto exchanges could lead to easy access for monopolies that could potentially harm ordinary investors. It is important to keep in mind that the ban is temporary. The ban is temporary and has no legal foundation. Additionally to the ban, the South Korean government's most recent guidelines don't provide any guidance on how to enforce them.
FAQ
Is there a limit to the amount of money I can make with cryptocurrency?
There isn't a limit on how much money you can make with cryptocurrency. However, you should be aware of any fees associated with trading. Fees vary depending on the exchange, but most exchanges charge a small fee per trade.
Where can I sell my coins for cash?
You can sell your coins to make cash. Localbitcoins.com allows you to meet face-to-face with other users and make trades. You can also find someone who will buy your coins at less than the price they were purchased at.
Can I trade Bitcoins on margins?
Yes, Bitcoin can be traded on margin. Margin trading allows for you to borrow more money from your existing holdings. Interest is added to the amount you owe when you borrow additional money.
What is an ICO, and why should you care?
An initial coin offering (ICO) is similar to an IPO, except that it involves a startup rather than a publicly traded corporation. When a startup wants to raise funds for its project, it sells tokens to investors. These tokens are shares in the company. They're often sold at discounted prices, giving early investors a chance to make huge profits.
Statistics
- Ethereum estimates its energy usage will decrease by 99.95% once it closes “the final chapter of proof of work on Ethereum.” (forbes.com)
- While the original crypto is down by 35% year to date, Bitcoin has seen an appreciation of more than 1,000% over the past five years. (forbes.com)
- Something that drops by 50% is not suitable for anything but speculation.” (forbes.com)
- This is on top of any fees that your crypto exchange or brokerage may charge; these can run up to 5% themselves, meaning you might lose 10% of your crypto purchase to fees. (forbes.com)
- That's growth of more than 4,500%. (forbes.com)
External Links
How To
How to convert Cryptocurrency into USD
It is important to shop around for the best price, as there are many exchanges. Avoid buying from unregulated exchanges like LocalBitcoins.com. Always do your research and find reputable sites.
BitBargain.com lets you list all your coins at once and allows you sell your cryptocurrency. By doing this, you can see how much other people want to buy them.
Once you find a buyer, send them the correct amount in bitcoin (or any other cryptocurrency) and wait for payment confirmation. Once they confirm, you will receive your funds immediately.