Three South Korean Banks Stop Working With the Nation’s Crypto Exchanges

[Leviathan.007]

According to a report, three local banks in South Korea have stopped cooperating with the country's crypto currency exchanges. Such decisions by these banks regarding exchange offices are due to the strict and rigid regulatory environment of the country.
These banks include Woori Financial Group, KB and Hana.
Remarkably, Korean banks reaffirmed that South Korean regulation has largely created unfavorable conditions for crypto currency exchanges.
Under South Korea's new regulations, all crypto currency exchanges in the country must regulate their banking contracts for prosecution.
Of course, the new South Korean regulations have not yet been implemented in this regard and will enter into force on September 24, 2021.


Source: https://www.investing.com/news/cryptocurrency-news/three-south-korean-banks-stop-working-with-the-nations-crypto-exchanges-2516175

[Hydrogen]

The pandemic deprived south koreans of investment opportunities and jobs. These anti bitcoin measures are likely to have an identical effect. Who will people hold responsible for loss of jobs and opportunities to make money. Can the vacuum left behind by anti bitcoin regulation be filled by something else. Or will they be gone forever.

Bitcoin IMO succeeded in creating more than $1 trillion dollar's worth of jobs and financial opportunities across the globe. Replacing that loss due to anti bitcoin regulation, could be difficult if not impossible. The silence and lack of legitimate discussion on these topics is deafening. As someone who actively read user posts on the internet over the last 10 years. Its stunning how the quality of discussion has declined. It has become more common for people to repeat very generic statements on issues they might prefer not to think about.

[Twentyonepaylots]

So this is the South Korea FUD that the Bog brothers called on us guys. Lmao it will always be up to you if you'd let this sway your investment in bitcoin or not, and frankly speaking whichever you choose is the correct choice. It's right to avoid losses and dip early, but it's also correct for you to hold on at the very least until we see the greens again. It's a case-to-case basis really.

[YOSHIE]

According to a report, three local banks in South Korea have stopped cooperating with the country's crypto currency exchanges.

If I read the news that the OP gave South Korea about digital currency as you conveyed, I think it is very contrary to the news I read at that time, South Korea said, the way they use digital currency.

South Korea to launch digital currency pilot in August

S. Korea's c.bank moves to develop pilot digital currency

I hope the news about the discontinuation of South Korean banks cooperating with digital currencies will end up being fictitious.

As far as I know, young people, investors and the government in South Korea are quite enthusiastic about crypto at this time.

[Kong Hey Pakboy]

So this is the South Korea FUD that the Bog brothers called on us guys. Lmao it will always be up to you if you'd let this sway your investment in bitcoin or not, and frankly speaking whichever you choose is the correct choice. It's right to avoid losses and dip early, but it's also correct for you to hold on at the very least until we see the greens again. It's a case-to-case basis really.

If you have invested in bitcoin when it was priced as 10k then you still probably have a lot of profit. This FUD will cause a temporary dip in the prices but as @Twentyonepaylots said, just wait and hodl if you can or get out early if you don't like suferring a big loss.

[arwin100]

According to a report, three local banks in South Korea have stopped cooperating with the country's crypto currency exchanges. Such decisions by these banks regarding exchange offices are due to the strict and rigid regulatory environment of the country.
These banks include Woori Financial Group, KB and Hana.
Remarkably, Korean banks reaffirmed that South Korean regulation has largely created unfavorable conditions for crypto currency exchanges.
Under South Korea's new regulations, all crypto currency exchanges in the country must regulate their banking contracts for prosecution.
Of course, the new South Korean regulations have not yet been implemented in this regard and will enter into force on September 24, 2021.


Source: https://www.investing.com/news/cryptocurrency-news/three-south-korean-banks-stop-working-with-the-nations-crypto-exchanges-2516175

I will just treat this as a fud they used this korean issue before just to try the market to dump and after this they are using this again so I believe they want the market go drop again so that they can buy bitcoins at the cheapest rate. Hopefully people will get used to this kind of fud and will not try to listen on any of those spreading since if majority will just don't give a damn on those unsure issues maybe we cannot see bitcoin going to dip.

[Ucy]

Well, a centralized exchange has to be subjected to the good rules that are meant to secure the financial sector that operate like the banks in their host countries. They typically have the unique personal identities of users, or are there more requirements? Well, as long as the requirements are reasonable, and safely solve the problem they were created for.

Every responsible human on earth need a neutral ground to safely benefit from cryptocurrency... That has to be peer-to-peer decentralized platforms/networks. This is the reason for true cryptocurrency. It's has to be done safely and efficiently.

[paxmao]

You should understand these news in the context of the South Korean society, psicology and context. The high paying jobs that would enable a realistic chance for the young to access proper housing and a good standard of life are in for an ultracompetitive process between the students that stars the moment they can speak.

In this race, there are more looser than winners and that means that you will find many people willing to risk everything they own for a chance of getting rich quick. The banks are probably scared of what that means for the savings of the people and the country, not to mention the suicide cases.

[ahsanif]

we don't know if the number of banks that stop working together will continue to increase, of course this is quite worrying because suddenly
time will determine whether they return to revise and accept the cooperation again

[Lucius]

In this race, there are more looser than winners and that means that you will find many people willing to risk everything they own for a chance of getting rich quick. The banks are probably scared of what that means for the savings of the people and the country, not to mention the suicide cases.

This now turns out that banks are doing something good for society by preventing people from investing in risky investments - and everyone's right should be to be able to dispose of their money at any time, however they wish. Maybe it's some banks that have a high moral standard, instead of just trying to make as much profit as possible - but I still think that those banks are just trying to keep as much money in their accounts as possible instead of pouring that money into crypto.

Of course, banks will say they are being forced to do so by the authorities, but they are working with the same goal - to discourage and make it harder for people to trade cryptocurrencies - because if we get banks out of the crypto equation, very few people would find alternative methods to convert fiat to crypto.

[Theb]

What we are seeing now is the effect of the new regulation being enforced in their country. I have recalled seeing this article last April threatening/reminding that almost all of their 200 crypto exchanges can be "shutdown" if they don't follow the new regulatory framework and their requirements.

South Korea’s Top Financial Regulator Suggests All Crypto Exchanges Could Be Shut Down

On April 19, the government’s policy office issued a statement that authorities will implement a “special enforcement period” from April to September to shut down any “illegitimate crypto businesses” and ensure that exchanges are abiding by the FTRA.   

The most important qualification for VASP registration is an official partnership with a local commercial bank. Out of the some 200 exchanges to which Eun alluded, only the country’s four largest exchanges, known as the “Big 4,” have established such partnerships thus far. Many industry insiders already think the Big 4 will end up being the only exchanges to survive the regulatory tidal wave, but Eun’s comments have stirred up new worries.

So what we are seeing now was set in motion right after the new regulation has been announced and it's kinda weird to see why these exchanges are not acting anything about it since they are literally endangering the funds of their clients with the delay they are doing. It is obvious that new kinds of regulations and enforcement will happen as the crypto industry is new for everyone even on a crypto-friendly country such as South Korea.

[el kaka22]

I get that banks may support or be against crypto because of where they stand, but stop working with crypto exchanges is basically the way of saying they do not want to deal with crypto in that nation. Let's face it banks are so much involved in our lives that we can't live without them anymore, it is a very scary situation that is for sure but it is the reality, we can't live without banks.

So, you are a regular person who wants to buy a bitcoin and you have the money for it but your bank or any bank in your nation doesn't work with crypto exchanges, what do you do? You work via P2P to make that trade, which relies heavily on trust and definitely a harder move and that is not going to be easy. This is why I think it is obvious banks are doing it to hurt the crypto world in Korea, there is no other ways around it, it is perfectly legal so if they want to, they can work with the exchanges, so it is just out of pettiness.

[fiulpro]

According to a report, three local banks in South Korea have stopped cooperating with the country's crypto currency exchanges. Such decisions by these banks regarding exchange offices are due to the strict and rigid regulatory environment of the country.
These banks include Woori Financial Group, KB and Hana.
Remarkably, Korean banks reaffirmed that South Korean regulation has largely created unfavorable conditions for crypto currency exchanges.
Under South Korea's new regulations, all crypto currency exchanges in the country must regulate their banking contracts for prosecution.
Of course, the new South Korean regulations have not yet been implemented in this regard and will enter into force on September 24, 2021.


Source: https://www.investing.com/news/cryptocurrency-news/three-south-korean-banks-stop-working-with-the-nations-crypto-exchanges-2516175

This is very common in other countries. For example:- Take the case of India. It was very hard to trade through normal banks accounts, if the government found out that you were actually involved in trading , they would put your accounts on hold or suspend them. But there were still international bank accounts which you could use.
-So what people used to do were use p2p Trading through other third party sites or they even sold BTC and other things to their friends, which worked fine and the ban was lifted.

What I mean to say is ;
This is something that can be conquered
The people can get past this thing if they use a different approach. The government can for sure make such decisions but they can't ever control cryptocurrencies wholly.

Banks on the other hand should have a synergistic relationship with cryptocurrencies instead of banning them. This is foolish.

[dothebeats]

I don't really understand why there is a need for banks to stop working towards development of finance—and perhaps banking—by halting services or temporarily disabling accounts which engaged in crypto exchanges. There is nothing to gain but more to lose given that some account owners will see this as a negative sign that will not help them in any way, especially those traders who were already comfortable using the bank.

If I read the news that the OP gave South Korea about digital currency as you conveyed, I think it is very contrary to the news I read at that time, South Korea said, the way they use digital currency.

South Korea to launch digital currency pilot in August

S. Korea's c.bank moves to develop pilot digital currency

Eh, this is about their own digital currency and not about other digital currencies currently existing. Perhaps that may be the reason why some banks are starting to close their doors on accounts doing business with cryptocurrency exchanges.

[meanwords]

Cryptocurrencies may someday be incorporated into the system, but for now, as there is a risk of being involved in crimes such as money laundering, it is very burdensome to transact. (…) I’m not considering it,” said a senior KB Financial Group official.

This is just very flawed argument. Might as well not not use fiat currencies at all as it is the number thing being used for money laundering, embezzlement, etc.

I think they just doesn't want to get associated with Bitcoin, especially now that we are seeing constant red. They are preventing people from investing in such a risky investment.

I hope they reverse this in the future when Bitcoin became a little bit more stable.

[electronicash]

Cryptocurrencies may someday be incorporated into the system, but for now, as there is a risk of being involved in crimes such as money laundering, it is very burdensome to transact. (…) I’m not considering it,” said a senior KB Financial Group official.

This is just very flawed argument. Might as well not not use fiat currencies at all as it is the number thing being used for money laundering, embezzlement, etc.

I think they just doesn't want to get associated with Bitcoin, especially now that we are seeing constant red. They are preventing people from investing in such a risky investment.

I hope they reverse this in the future when Bitcoin became a little bit more stable.

this is indefinite because the laws are yet to be created. this is 3 days ago and still one of the reasons for holders dumping.
the article still says it's about money laundering that they are not willing to risk their position when the regulations are implemented. this could take long before they are going to be created but because they are law-abiding they are going to stop for now. ofc they are abiding by the law.

[davis196]

It's sad to see a country that used to be crypto-friendly joining the group of countries,that have very hostile regulations against cryptocurrency trading.
I remember 2018,when were talking mostly about cryptocurrency adoption in South Korea and Japan.Those countries were pioneers in the crypto industry.They were ahead of USA and Europe,in terms of cryptocurrency adoption.Now,South Korea and Japan seem to be even more anti-crypto than USA and Europe.

[aysg76]

According to a report, three local banks in South Korea have stopped cooperating with the country's crypto currency exchanges. Such decisions by these banks regarding exchange offices are due to the strict and rigid regulatory environment of the country.
These banks include Woori Financial Group, KB and Hana.
Remarkably, Korean banks reaffirmed that South Korean regulation has largely created unfavorable conditions for crypto currency exchanges.
Under South Korea's new regulations, all crypto currency exchanges in the country must regulate their banking contracts for prosecution.
Of course, the new South Korean regulations have not yet been implemented in this regard and will enter into force on September 24, 2021.


Source: https://www.investing.com/news/cryptocurrency-news/three-south-korean-banks-stop-working-with-the-nations-crypto-exchanges-2516175

So there are more than 148 registered and licensed banks in South korea but the main point is that Financial group Bank is one of the largest banks in South korea and it's sad to see anti Bitcoin regulations adopted by these banks which can deprive account holders to directly invest in cryptocurrencies.

This might be another addition to the FUD being spread in the market for manipulation to dump and invest at low price again by the whales as it's not new method who knows.But if not another major reason could be excessive funds being flown into crypto market and banks fear of losing some control and want people to keep money at banks to maintain the cash inflow and outflow balance maintained in the economy.

That is the problem with banking sector and centralised Exchanges that could deprive your of crypto opportunity at any time by passing regulations against it.So decentalized and P2P Exchanges are best suited for that areas because people will still not much affected by these decisions and continue investing in the market.

[verita1]

This is not good news at all, apparently governments, and central banks have seen the obvious.
People prefer bitcoin and cryptocurrencies and they won't expect to see their fiat currencies die.
P2P is the solution for restrictions, but up to what limit?
We can see that our freedoms will be shortened. I would say that a solution to this friction would be for governments and central banks to adopt bitcoin.