New Regulatory changes delay launching of Chinese Crypto-Exchanges in South Korea
Jan 04, 2018 Posted / 4654 Views
Two prime Chinese cryptocurrency exchanges have postponed their launches in South Korea owing to ambiguity encircled by the government mandates. The regulators are at present enforcing operations on a real-name recognition system, which will put an end to the unidentified and shadowy trading of cryptocurrencies in the Korean country.
While the Chinese government shunned the crypto exchanges in China during September, two of the country’s biggest crypto trading platforms started planning to penetrate the South Korean market. The South Korean media have reported that Huobi and Okcoin have delayed their premeditated launches in Korea in the midst of the contraction in government regulations.
In October came the announcement of starting a subsidiary called Okcoin Korea with an arrangement to begin a trading service in December of last year. Primarily, it was planned that the platform would sustain 10 cryptocurrencies, which includes bitcoin (BTC), bitcoin cash (BCH), and ether (ETH). Nonetheless, several reports in the media elaborated that the plans were absconded at the last minute owing to the uncertainties and ambiguity surrounding regulatory changes.
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Huobi was also preparing to begin an exchange in Korea. The company combined with Japan’s SBI Holdings and started its operations in Japan. According to some reports, SBI will purchase 10% stakes in Huobi’s South Korean subsidiary. In fact in November last year, Huobi’s CEO, Li Lin, quoted by the Korea media saying that they are preparing to launch an exchange in Korea to compete with Bithumb.
Bithumb has been claimed as the biggest crypto exchange in South Korea in terms of volume. Nevertheless, at present, newcomer Upbit has been reported as gaining high trading volumes, which have even exceeded those of Bithumb. Upbit, which is supported by Kakao Corporation, which possesses the country’s biggest chat app called Kakao Talk.
During the last month of the year 2017, the Korean regulators came up with several mandates to control cryptocurrency regulation. The majority of announcements pertains the anonymous trading of cryptocurrencies. The government initiated a real-name identification system and is expected to end the entire anonymous and shadowy trading by January 20. At present, this practice is made possible by the use of “virtual accounts.” So far, all chief crypto platforms in the country have announced that they will comply with all regulatory measures and have revised their terms of service consequently.
The mandates did not only remain till abstaining the issuance of new virtual accounts, the government has also concluded that a new entry into the virtual currency trading market will be stopped until the comprehension of the ‘virtual money real name system’ that can corroborate the uniqueness of the account owner.
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