New regulation in South Korea has forced several exchanges to close

[jaysabi]

https://fortune.com/2021/09/17/south-korea-crypto-exchange-shut-down-bitcoin-regulation/

The regulation coming into place this week places unbearable compliance demands on crypto exchanges up to the point of only three of these being able to fully comply. SK is one of the countries where people have participated in crypto to a much higher degree than in most and this is not good news. Still, some of the exchanges remain open.

In 2022, the government will also introduce a crypto capital gains tax; investors who make over $2,135 in trading profit will face a 20% tariff.

With the amount of exchange fraud happening in South Korea by the unscrupulous exchange operators and the massive increase in reports of fraud by retail traders, I'd say the regulations are overall a good thing.  It will increase confidence in crypto and cut down on bad actors.  In the short term, it will restrict competition as the largest exchanges can afford to comply with the regulations quickly.  It's a shame there hasn't seemed to be enough forewarning to allow more exchanges to comply by the deadline.  They could have handled that aspect better.

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[bryant.coleman]

With the amount of exchange fraud happening in South Korea by the unscrupulous exchange operators and the massive increase in reports of fraud by retail traders, I'd say the regulations are overall a good thing.  It will increase confidence in crypto and cut down on bad actors.  In the short term, it will restrict competition as the largest exchanges can afford to comply with the regulations quickly.  It's a shame there hasn't seemed to be enough forewarning to allow more exchanges to comply by the deadline.  They could have handled that aspect better.

What is the point in having close to a hundred cryptocurrency exchanges in a small country like South Korea? Small-sized exchanges are more vulnerable to hacking and at least some of them may be operated by shady characters. The regulations are a bit strict, but the government had given enough time to the exchanges. With some effort, it was possible even for the smaller exchanges to complete them ahead of the deadline. If they were not serious about it, then it is their problem. No point in blaming the government here.

[Baihaki Khaizan]

Since it was first introduced in 2009, bitcoin has continued to grow into a digital asset. Bitcoin which was initially widely opposed, now many countries are starting to open up opportunities for cryptocurrencies to grow. Of course, by starting to finalize various regulations to ensure the safety of the parties involved.
 
The attitude of each country in responding to the presence of cryptocurrencies is still diverse. Switzerland in February, openly accepted crypto as a means of payment. However, there are also countries that are still working on the rules for the development of the crypto industry.

South Korean regulator Financial Services Commission (FSC) chairman Eun Sung-soo has warned that all cryptocurrency exchanges in the country could be shut down. He said South Korea currently has around 200 cryptocurrency exchange platforms.

Eun explained that cryptocurrency exchanges must be registered with the FSC, under the revised Special Funds Act.

un asserted, cryptocurrency is not a currency. The South Korean government, he continued, has repeatedly warned investors that the price volatility that often occurs in the crypto world can be dangerous for investors.

However, on the other hand, Eun revealed, investors can also benefit from investing in cryptocurrencies. The plan is that the government will also impose a 20 percent tax from February next year.

Meanwhile, India does not close all options in terms of cryptocurrencies, including the use of blockchain technology. This was conveyed by Indian Finance Minister Nirmala Sitharaman last month.

Shitaraman said people would be given adequate places to experiment with blockchain, bitcoin and other cryptocurrencies. According to him, the Government of India is currently preparing the cabinet notes.

The plan is that the Government of India will allow a number of places for people to experiment on blockchain and bitcoin. However, Shitaraman revealed, what kind of formulation for the development of cryptocurrencies is still in the brewing stage.


https://www.republika.co.id/berita/qspwy1368/tarik-ulur-regulasi-kripto-di-berbagai-negara



So, I don't think this is the end of cryptocurrencies.

regulations made in a number of different countries.

[Finestream]

With the amount of exchange fraud happening in South Korea by the unscrupulous exchange operators and the massive increase in reports of fraud by retail traders, I'd say the regulations are overall a good thing.  It will increase confidence in crypto and cut down on bad actors.  In the short term, it will restrict competition as the largest exchanges can afford to comply with the regulations quickly.  It's a shame there hasn't seemed to be enough forewarning to allow more exchanges to comply by the deadline.  They could have handled that aspect better.

What is the point in having close to a hundred cryptocurrency exchanges in a small country like South Korea? Small-sized exchanges are more vulnerable to hacking and at least some of them may be operated by shady characters. The regulations are a bit strict, but the government had given enough time to the exchanges. With some effort, it was possible even for the smaller exchanges to complete them ahead of the deadline. If they were not serious about it, then it is their problem. No point in blaming the government here.

Of course it will always in favor with the government so if such exchanges are operated illegally, then they will be force to close their sites. For me, it might be a big hassle for thousands of traders residing in South Korea but i know it will be for their own security. And we can assure that after this operation, what's left are those legit and reliable exchanges. If these operators don't have negative motives, then they can easily comply with the requirements.

[Haunebu]

Bad news, but they are still allowing their citizens to trade cryptocurrencies albeit with various restrictions unlike countries like China who are outright banning them instead of trying to regulate them in different ways.

This news will only affect domestic traders in South Korea primarily in my opinion. Exchanges should be prepared for these scenarios in order to survive in this competitive market.

[finaleshot2016]

Exchange platforms and local wallets will be the number one target of the government in case they want to put a tax on cryptocurrency because it's their one and only choice. Luckily, at this moment, our country doesn't have any taxes on crypto and even in local wallets but I'm sure that they're working on it right now. But still, cryptocurrency is allowed in the country, let's say that it's still a good news rather than implementing a crypto ban in the whole country that puts their investments in danger.