NewsletterCrypto Crackdown By South Korea To Delay Global Crypto Market Recovery, Here’s Why
Highlights
- South Korea's regulators put significant pressure on crypto trading and crypto exchanges.
- Financial Supervisory Service a real-time system to increase oversight and monitor unusual crypto trading activity.
- Upbit and Bithumb faces significant decline in trading volumes.
- Crypto crackdown likely to delay market recovery.
South Korean regulatory crackdown against crypto has put significant pressure on crypto trading and crypto exchanges, causing an uptick in uncertainty among traders. The move comes as regulators in South Korea push to strengthen regulation under the new digital asset law that takes effect later this month. Experts believe that the guidelines could pose significant challenges to some altcoins.
South Korea Tightens Crypto Trading
The Financial Supervisory Service of South Korea on July 4 stated that a system to increase oversight and monitor unusual crypto trading activity is underway. Crypto exchanges are notified to feed data and details into the system as the Virtual Asset User Protection Act goes into effect on July 19.
While mass delisting is denied by South Korea’s Digital Asset Exchange Alliance (DAXA), the crypto body launched a 6-month review of over 1,300 digital assets to ensure compliance with the legislation.
Matt Younghoon Mok, senior foreign attorney and partner with Lee & Ko in Seoul, said FSS guidelines “could pose significant challenges for altcoins that cannot swiftly comply with regulatory requirements.” Trading over normal volume and price ranges, large transactions, and relatively slow execution are red flags that could lead to severe penalties.
Also Read: Ripple Vs SEC Update — Lawyers Reveal How SEC’s Reply Impact Final Decision
Why Global Crypto Market Recovery Could Delay?
South Korea holds a prominent position in the global crypto market, with the Korean won recently surpassing the US dollar as the most-used currency for crypto trading. Approximately 10% of the country’s population has exposure to digital assets, with smaller coins comprising the bulk of trading rather than Bitcoin.
According to the latest report by Korea Forbes, Upbit and Bithumb crypto exchanges are the top-ranked crypto apps in South Korea. However, the trading volumes have declined across the top crypto exchanges in South Korea, as per Kaiko.
Also Read: Crypto Market Crash — Why Bitcoin And Altcoins Are Falling
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Expert Predicts Further Downside For Bitcoin As Fear and Greed Index Drops To 10
- Solana and XRP ETFs Attract Fresh Inflows Even as Crypto Market Falls
- BLS to Release Jobs Report on Nov. 20 as Uncertainty Over Fed Rate Cut Persists
- JPMorgan calls Bitcoin Price Bottom, Predicts It Will Challenge Gold Next Year
- Zcash to Surpass XRP? Arthur Hayes Makes Bold Claim Amid ZEC’s 45% Rally
- Litecoin Price: With a 12% Surge and Pearson BTC Correlation at –0.01, Is LTC Gearing Up for $125?
- What’s Next for Chainlink Price After 53.87 Million Tokens Accumulated
- What the New Bitcoin Model Predicts About a Possible $200K BTC Price Target?
- Zcash Price Soars 45%: Here’s Why
- Bitcoin Price Pattern Points to a Crash to $62k as Fed Cut Odds Fall to 54%
- Zcash Price Defies Market Crash: Will Shrinking Exchange Netflows Keep ZEC Rallying?
