The South Korean government has released its emergency cryptocurrency regulation and many are seeing it as a positive move. There are over 30 cryptocurrency exchanges that agreed to participate in the government mandated self-regulation policy. The goal is to keep investor’s assets safe and to make the listing of cryptocurrency markets more transparent. One of the first implementations would only allow traders to keep 100% of their KRW in their financial accounts and 70% of their crypto holdings in offline cold storage. These measures are to prevent investors losing their funds to hackings. In addition, only one registered crypto trading account per user will be allowed. Face-to-face identity verification will be required before any deposits or withdraws can occur. “Only a confirmed customer through a verification process” can trade cryptocurrencies.
All though many are unhappy with the tightening of regulations, the over all effect on the market will be great for the growth of crypto. Litecoin’s Charles Lee noted that the imposition of practical regulation by the Japanese and South Korean governments that oversee the second and third largest cryptocurrency exchange markets behind the US is optimistic for the long-term growth of cryptocurrencies, including bitcoin and Litecoin.
“I think increased regulation will help to reduce the volatility of the coin. A lot of the recent gains have had a lot to do with countries like (South) Korea and Japan really getting into the cryptocurrency space,” said Lee.
South Korean Blockchain Association
He also stated South Korea has replaced China as the emerging cryptocurrency market. The market has seen a large influx of growth recently due to South Korea pushing the price of leading cryptocurrencies. Bitcoin and Altcoins are predicted to have a record setting year 2018, South Korea implementing these self-regulating measures will give a good case-study on how cryptocurrencies and the government can coincide.