Thoughts: Cryptocurrency Challenges in South Korea

Despite all the talks about closing down on Cryptocurrency exchanges and trades by the government during the last couple of months, South Korea is still considered one of the major hubs for this new digital currency, and one of the country’s that holds most of its exchanges.

In a recent news, South Korea is considering a new licensing system for cryptocurrency exchanges that will allow only those exchanges who have applied and got a license, known as Bit-license, to trade cryptocurrencies in the country. This new system imposes new laws to regulate this new market, where it sets a minimum capital requirements and limits on the firms and currencies that can be traded.

This move will help South Korea’s government to supervise this volatile market and keep an eye on the trades that are happening. In addition to that, it will help South Korea to be involved in the new revolutionary block-chain technology that is considered the main component of the cryptocurrency market. The South Korean Prime Minister, Kim Do-yeon, agreed that the country doesn’t need to get rid of the digital currency completely, but rather regulate them to ensure fair and legal trades across the world.  

Cryptocurrencies, such as Bitcoin, offers a lot of benefits for those who are looking to trade currencies. Other than its low transaction costs, cryptocurrencies offer transaction privacy, where personal information are not exposed, as well as a decentralized control, where there is no one single entity that can change the rules of the block-chain technology, which helps preventing a single points of control over this new currency.

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