Moves in South Korea to make cryptocurrency trading more transparent

Moves in South Korea to make cryptocurrency trading more transparent

© Reuters. FILE PHOTO: A copy of bitcoin standing on PC motherboard is seen in this illustration picture© Reuters. FILE PHOTO: A copy of bitcoin standing on PC motherboard is seen in this illustration picture

By Dahee Kim and Joyce Lee

SEOUL (Reuters) – A South Korean blockchain association announced on Friday measures to boost transparency in trading of cryptocurrencies, agreed by 14 exchanges in the country including the world’s busiest virtual currency exchange, Bitthumb.

The Korea Blockchain Industry Association said in a statement users would only be allowed to trade virtual currency through one account after their identity has been confirmed via traditional financial institutions like banks.

The statement added virtual currency exchanges with more than 2 billion won ($1.83 million) worth in assets would be allowed to operate. Measures, which are not mandatory, will start being imposed beginning Jan. 1 next year, the country’s only association for virtual currency exchanges said.

“The regulations will ensure the safety of consumers and transparency in trade and are expected to be the strongest and most effective measures (regarding virtual currency exchanges) on a global scale,” said the statement.

Kim Jin-hwa, one of the association’s leaders, said exchanges would especially work towards identifying account users.

Drawn by bitcoin’s explosive surge of more than 15-fold this year, ordinary South Koreans from housewives to college students and office workers have rushed to mobile-app based virtual currency exchanges in hopes of quick profits despite government-issued warnings.

Despite Friday’s announcement, analysts were skeptical the measures would impact bitcoin exchange prices to a great extent.

“Today’s announcement is unlikely to affect the (bitcoin) price as exchanges can always decide not to follow,” said Park Nok-sun, a cryptocurrency analyst at NH Investment & Securities.

“The measures are positive for sure in that they are actually trying to curb recent speculative investments.”

The world’s biggest and best known cryptocurrency, bitcoin () stood at $16,935 as of 0143 GMT.

South Korea’s cryptocurrency-related shares extended gains after the announcement, with Vidente (KQ:) and Omnitel (KQ:) up 10.3 percent and 3.4 percent respectively near midday.

Disclaimer:Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

(Why?)

Source

Reply