There is no denying that some countries are taking a very specific stand when it comes to cryptocurrency. South Korea has just recently announced the implementation of a whole new set of regulations for those who trade in digital currencies. They happen to have one of the largest cryptocurrency markets in the world, but they want to make sure that things are done properly and smoothly in order to avoid any issues.
This Asian nation has started to prepare a whole new legislation that will prohibit any anonymous use of these currencies and this is a very easy way for criminals to get involved in cyber crime that is much harder to trace. Additionally, these will create a completely new standard for the way that Bitcoin exchanges work. They have also stated that they are considering the possibility of getting the entire process of exchange for cryptocurrencies banned from the country, but this is a move that might be a little too drastic according to some people.
A huge hurdle for Bitcoin is the acceptance of governments and financial institutions, but this is very hard to achieve due to the volatility of the currency and the other available options. With a prohibited use of anonymous transactions, the country is setting up for a complete lockdown on illegal activities that can’t be traced. This was created to render one of the main features of virtual currency as useless as possible and that is the blockchain, which is really a fancy term for a system that allows the transaction to remain quite anonymous and untraceable for anyone outside of the two people involved.
These South Korean regulations are similar to the one applied by Japan and a few other countries in the region, but the decision to fully regulate cryptocurrencies could be one that sends these coins to the floor in terms of their value.
Now that things have started to take shape with these coins, it seems like many entities in the financial world are feeling a bit worried that this anonymity is going to become a huge problem and that is the reason why they are taking steps for regulation to be started.
South Korea is a very large market and quite active in the crypto exchange and investment area, with numbers reaching the million mark when it comes to the number of people who own virtual currency like Bitcoin or Ethereum. These regulations could be very bad news for those who have invested so much, because a change such as anonymity being banned could really hurt the value of these coins.
Only time will tell what happens, but South Korea seems to be one of those countries that is not interested in seeing these coins remain unregulated and able to be used for all kinds of activities of a very illegal nature. We will be seeing some important changes taking place in these markets and we have to wait to see the final word on those crypto regulations.