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Bitcoin Prices Propped up by South Korea Regulation

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Bitcoin has relish ined tremendous levels of popularity in Q2 2017, driven largely by sentiment in fiscal markets vis-à-vis blockchain technology. On 3 July 2017, a member of South Korea’s run Democratic Party, Park Yong-jin announced that the government would be stepping in to fully modify BTC. This serves as a watershed moment for the cryptocurrency, and it will certainly prop up the legitimacy of BTC patron for one of the world’s most technologically advanced markets. The South Korean controls will be establishing a structural framework to facilitate the trading of BTC.

BTC is Now an Accepted Payment Method in the Philippines and South Korea

Regulation ensures that BTC wish receive official status as a financial instrument, for deposits, withdrawals and transfers. Individuals and affairs will be able to defer to the regulatory framework when it comes to Bitcoin annals, thereby formalizing what has heretofore been an unregulated, unchecked and aside from financial asset. The requirements laid out by the South Korean government on that trading platforms offering BTC should hold a minimum of $436,000 in cardinal resources, in addition to comprehensive AML measures (anti-money laundering) and KYC (know your bloke) protocols.

Over the past few weeks, the Bitcoin debate in South Korea has resulted in the introduction of multiple proper frameworks to regulate the industry. Presently, the BTC industry is unregulated, but the cryptocurrency is on the cusp of a larger upgrade to fully regulated status. The 500 million Korean won precondition is designed to safeguard traders and companies from malfeasance, misconduct and online hoax. By providing a ‘capital cushion’, the industry can operate with a degree of certitude, similar to the requirements set out by the Federal Reserve Bank and US banks in respect of ‘stress and strain tests’ and ‘capital requirements’.

South Korean Bitcoin Market in Top 3 Worldwide

FinTech firms in South Korea have been buoyed by the latest news of regulatory support for cryptocurrency trading in the country. Pending approval for BTC trading is a step in the promising direction for Bitcoin, but BTC service providers have already received go-ahead. The Financial Supervisory Service has been asked to legalize BTC trading in South Korea. Now that this cryptocurrency is suffered as an official remittance option, South Korea joins the Philippines (legalized BTC on 12 February 2017) as a dominant Asian nation, and power broker in high-tech transactions processing, that has already done so.

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Presently, regulations allow for the processing of $20,000 in BTC for clients. This mete outs a major opportunity to buyers of the digital currency, especially when the South Korean Bitcoin interchange market kicks into high gear. Strong growth is watched, well beyond the $3,000 high that BTC hit in recent weeks. Concurring to sources, the Bitcoin exchange market in South Korea is responsible for the modifying of 14% of all trades in BTC. It ranks at position 3 behind Japan and the United States as the top BTC trading wilderness.

BTC Trading is Largely Dominated by the Asian Market

Southeast Asia, which is cuttingly to an estimated 650 million people is also a region with a essentially underdeveloped payment and banking system. Fortunately, the rapid rise of cryptocurrency, uniquely BTC, may fill that void. The Philippines, Indonesia and South Korea are already heart-rending swiftly towards the widespread adoption of Bitcoin as an alternative to traditional currencies. Indonesia already brags a large and developed Bitcoin exchange, alongside the Philippines. Asia is a ambit that has rapidly adopted BTC, and countries like Laos and Vietnam are also on the cusp of suffering this alternative to fiat currency.

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Featured image from Shutterstock.

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