South Korean crypto market to advance security while investors stay hesitant
South Korea’s cryptocurrency market is strengthening its security measures and internal management systems. In the last one week, South Korea Blockchain Association has sanctioned 12 crypto exchanges to own ample security measures and internal management systems.
A positive step for the country’s crypto market
The security measure will supposedly increase the inflow of capital in the country’s crypto market. The government of South Korea that has recently legalized cryptocurrencies in the country, is emphasizing to tighten the regulations in the local crypto exchange market and the blockchain sector. The aim is to boost the sector and enable growth of the latest startups & companies dealing with cryptocurrencies.
The crypto exchanges need to be fundamentally placed on hold after the government stated that it is officially legalizing the cryptocurrency market and regulating crypto trading platforms as regulated financial institutions.
As reported by CCN, several regional newspapers confirmed the news stating that Bithumb, UPbit, Gopax, OKCoin Korea, Korbit, Coineone, CoinZest, CPDAXX, HanbitKor, Huobi Korea, and NeoFrame, and DexKor have been approved by the Korea Blockchain Association, an institution that oversees the cryptocurrency industry and the blockchain sector.
How are the investors viewing the initiative?
The news hasn’t been accepted by investors whole-heartedly. The reason behind this is the debatable decision to approve Bithumb, the leading cryptocurrency in South Korea. The crypto exchange last month faced a hacking incident that resulted in the loss of over $40 million, of which only $16 million was regained.
But the security breach incident resulted in local investors losing confidence in Bithumb and the exchange had put a halt on all its transactions since then. The decision taken by the exchange barred users from withdrawing their funds.
Expressing discontentment in the government’s cryptocurrency moves, Kim Yong-bum, chairman of Financial Services Commission (FSC) mentioned in a recent press conference: “The government’s practical policies led the ‘Kimchi Premium’ to disappear in South Korea. At its peak, the ‘Kimchi Premium” in the local cryptocurrency exchange market reached 50 percent, due to unusual spike in demand and speculation. As of current, the price of cryptocurrencies is nearly identical to other markets, demonstrating stability in the South Korean cryptocurrency market.”
Image via Shutterstock
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