South Korea is an important element for Bitcoin blockchain’s system. It is recognized as the third biggest market dedicated for Bitcoin traders in the world. The country shows a high demand on using cryptocurrencies. Also, they are paying a lot higher for digital variable usage than other countries.
After the error produced by CoinMarketCap exchange platform, South Korea planned to ban the cryptocurrency’s institutions and individual users from country’s territory.
However, they seem to change their plans. There are two important South Korean exchange platforms, named Bithumb and Korbit. These were supported by Kookmin Bank till this year. It is the biggest Bank in South Korea, which announced about its exit from the blockchain system.
In South Korea, investors must own a virtual bank account that allow to withdraw and add funds in Korean currency. Their decision not to follow these exchanges came this month. Institutions and users started to be afraid on the ground that the bank could close other main cryptocurrency exchanges.
The second biggest bank in South Korea is supporting cryptocurrency exchanges
Fortunately for users, another public institution will start supporting crypto exchanges. This one is called Shinhan Bank and is the second largest institution of this kind in South Korea.
Now, everyone who wants to trade digital currencies must have a legal account at Shinhan Bank. Korbit exchange platform announced on its official website on 19 January 2018 that “In order to comply with the identification and anti-money laundering regulations enforced by the government, the current KRW deposit method will be terminated by the end of January 2018. To use the new KRW deposit method, which is slated to be implemented within this month, you must have a Shinhan Bank account”.
We want to remember that South Korean’s government still wants to introduce a strict regulation about cryptocurrency usage. Instead of supporting banks, users are still being afraid of the consequences.
Which are the future plans of South Korea?
After United States of America has registered a huge number of requests for Bitcoin’s futures contracts, South Korea is thinking to implement a regulation that will let financial institution support crypto market.
The government is considering that this measure will balance the digital system and reduce the risks of negative consequences.
The global marketplace is getting stabilized slowly and South Korean crypto trading platforms are becoming more optimistic about future.
Will South Korea really adopt a regulation to support Bitcoin’s futures contracts? What’s your opinion?