• South Korea regulates cryptocurrencies by following China’s actions.
• Crypto exchanges like Gopax are canceled for not complying with the South Korea registration.
Some of the most famous crypto exchanges in South Korea have been canceled for not complying with stricter rules. The Chinese government has once again lashed out at the virtual marketplace by banning crypto transactions in the nation. The cryptocurrency market is tense, and this could affect the value of each token over the week.
Crypto exchanges banned across China
Major news regarding the cryptocurrency market includes the regulations from one of the economic powerhouses of the world, China. Beijing announced that crypto exchanges would be banned definitely and no longer operate in the country. This regulation step has affected the investors who remained linked to the exchanges within the Asian country.
This measure against cryptos looks exaggerated when compared to those that South Korea has imposed in recent months. Korea only seeks to organize the decentralized market by ensuring exchanges are registered before they operate freely.
South Korea’s regulations against crypto exchanges were motivated by the former FSC director, who does not regard Bitcoin as a currency of real value. The head of the financial service said that it is dangerous to invest in cryptocurrencies, so he refuses to accept them.
After Sung-Soo, former head of the FSC stepped down, Seung-Beom continued with those thoughts. However, the regulations he seeks to impose on crypto exchanges are not that extreme.
From today, September 27, South Korea will only operate registered exchanges such as Korbit, Coinone, and Upbit. Exchanges like Gopax were registered, but their association with a Korean bank fell apart and was canceled.
How do these measures affect the cryptocurrency market?
While South Korea is not the only country that trades cryptocurrencies in Asia, it is a big player like China. By reducing crypto exchanges, South Korea regulates the number of business investors and citizens who use cryptos.
However, the imposed regulation could also open a new episode in Korea’s crypto market, allowing new partners to invest. This could increase the demand for cryptos in the coming months and hopefully lead to new all-time highs.
On the side of China, the regulations were already present for a long time, and this latest action proves it. Beijing alienates crypto from citizens, but this will not cause the market to collapse. But cryptos are gaining traction even though their current trading is not favorable.