The South Korean authorities introduced new laws at present that may put more and more robust rules on the nation’s burgeoning cryptocurrency markets. Underneath the laws, Korea, which is the third largest market for cryptocurrencies in the world after the U.S. and Japan, would ban nameless accounts and frequently monitor crypto exchanges.
Maybe extra ominously, the Wall Street Journal reported as well that the Ministry of Justice is considering unilaterally closing all crypto exchanges in the country, though didn’t present any detailed steering or timelines on when such a coverage is perhaps enacted.
The information slammed cryptocurrency costs. Bitcoin was hit about 12%, dropping from round $15,500 to finally hitting a backside of $13611, in keeping with Coindesk. Ethereum was hit about 8% within the aftermath of the information.
The proposed laws on nameless accounts is in line with recommendations from the Korea Blockchain Industry Association earlier this month which declared that foreign money operations between Korean Received and cryptocurrency-denominated accounts ought to solely be allowed in instances the place the id of the account holder has been confirmed. 14 member exchanges agreed to that proposal.
Absolutely the frenzy of cryptocurrencies has taken the nation’s management unexpectedly, and the federal government has raced to alter legal guidelines to facilitate and regulate the business. Earlier this month, the government also announced that it intended to tax cryptocurrency gains as capital gains in an try to stem the onslaught of money coming in from Korean client traders.
Regardless of large reputation among the many Korean public, there have been growing issues that Korea’s exchanges are insecure. Final week, probably the most distinguished Korean cryptocurrency exchanges, Youbit, collapsed following a $35 million hack earlier this month. That was after a $72 million hack on the change in April.
As I mentioned final week on TechCrunch, there is increasing evidence that North Korea has been using bitcoin trading as a key side business moneymaker for the Kim regime. Via hacks on conventional banks and its threatening nuclear weapons posture, the regime has tried to undermine religion in conventional establishments, pushing extra traders to cryptocurrencies as a safer, extra secure guess. Eliminating nameless accounts could be one step to assist forestall the North from infiltrating the South’s crypto infrastructure.