[2018-01-21]SOUTH KOREAN EXCHANGES ARE BARRING FOREIGN RESIDENTS FROM TRADING

[vit05]

https://bitcoinist.com/south-korean-exchanges-are-barring-foreign-residents-from-trading/

The South Korean government was the cause of major turmoil in the global cryptocurrency market as rumors spread that they were planning to ban cryptocurrency trading across the country. Soon after the news was released, the total cryptocurrency market valuation dropped by almost 50%, causing major financial losses for a lot of traders worldwide.

Later, government officials stated that a digital currency exchange ban is only a potential measure for enforcing regulations. Since then, the cryptocurrency market has stabilized at a valuation around $620 billion after having previously fallen to $428 billion. The new regulations are aimed to curb South Korean exchanges from allowing unverified accounts to trade digital assets. Exchanges that do not fully comply with KYC/AML procedures might also be banned by the new regulations.

[jjacob]

https://bitcoinist.com/south-korean-exchanges-are-barring-foreign-residents-from-trading/

The South Korean government was the cause of major turmoil in the global cryptocurrency market as rumors spread that they were planning to ban cryptocurrency trading across the country. Soon after the news was released, the total cryptocurrency market valuation dropped by almost 50%, causing major financial losses for a lot of traders worldwide.

Later, government officials stated that a digital currency exchange ban is only a potential measure for enforcing regulations. Since then, the cryptocurrency market has stabilized at a valuation around $620 billion after having previously fallen to $428 billion. The new regulations are aimed to curb South Korean exchanges from allowing unverified accounts to trade digital assets. Exchanges that do not fully comply with KYC/AML procedures might also be banned by the new regulations.

I don't see what is the point of preventing foreigners from trading in cryptocurrencies. In today's globalized world, you really cannot impose restrictions. KYC and tracking IPs might help to some extent, but you cannot prevent a South Korean from exchanging cryptocurrencies with foreigners on a decentralized / peer-to-peer exchange. So all this will do is reduce liquidity and hurt traditional Korean exchanges.

[gentlemand]

I don't see what is the point of preventing foreigners from trading in cryptocurrencies. In today's globalized world, you really cannot impose restrictions. KYC and tracking IPs might help to some extent, but you cannot prevent a South Korean from exchanging cryptocurrencies with foreigners on a decentralized / peer-to-peer exchange. So all this will do is reduce liquidity and hurt traditional Korean exchanges.

There's already been a case of a South Korean fella being prosecuted for acting as a proxy for Chinese traders and this was before this 'ban'.

I'd be very curious to know how many Chinese traders migrated to S Korean exchanges. It seems pointless to me as they can't access banking but maybe they're cashing out P2P. It seems to be accepted that China went there afterwards but I've never seen any evidence for it.

[ulhaq]

According to the article, only 1 exchange, Korbit, is planning on banning foreign residents, but only those making deposits in korean won. So the part about foreign residents being banned from trading is a bit of an exaggeration. There is nothing impossible about applying KYC/AML laws to foreigners.