When listing the world’s most crypto-friendly countries, seldom does South Korea make the cut. Malta, Singapore, Switzerland, and Estonia are typically additional on our top-of-mind. South Koreans, in fact, account for approximately 30% of total cryptocurrency commerce worldwide, with some 30% of all salaried staff owning and trading crypto assets of some kind. Certainly, the country’s recent economic history and growth may be a issue, except for a reasonably small country, it has an extremely developed cryptocurrency exchange scene.
The South Korea’s Exchange Scene
South Korea includes a highly developed crypto exchange scene with Bithumb, the largest Korean exchange, ranking within the high spot over the last thirty days in terms of commerce volume in USD. After that there’s also Upbit, Coinone, and Korbit. Most of the market is covered by Bithumb and Upbit Exchange [Around 86%].
As per the report, there are been many cases during which simply the announcement of an altcoin getting listed on either of these exchanges saw its price rise by ridiculous proportions. Once Tron [TRX] was listed on Bithumb exchange, earlier in April, this year, its price went climbing from $0.03 USD to $0.05 USD in as just 3 hours.
The Cindicator report states:
“There isn’t any doubt that Korean exchanges are a key component in making an attempt to analyse the crypto development within the Asian.”
Cryptocurrencies And Mass Adoption
Coinone is working on a blockchain project to create cash transfers easier round the globe, whereas Bithumb additionally recently declared a payment service in partnership with ‘Qoo10’. This company is well renowned by the name of “Asian Amazon.”
There are also several other businesses that are taking blockchain tech to the thought, together with accelerator projects like Deblock.
Crypto’s And Regulations
South Korea was particularly plagued by Ponzi schemes and other subtle crypto scams. This, included an oversized commerce volume that caught the attention of regulators, lead them to the requirement of a stricter stance on cryptocurrency. In fact, from Sept. 2017 through March 2018, both ICOs and therefore the anonymous trading of cryptos were prohibited.
These restrictions saw many subsidiaries and projects heading offshore to Singapore to launch ICOs, though the price of doing this was prohibitory to startups.
The Korean govt. recently declared 1 Tln won [USD $880 Mln] to pay on blockchain development in 2019 as a part of a five trillion won package to stimulate the economy through innovation.
This is a telling indicator that South Korea is dynamic to its stance and making an additional favorable climate for blockchain technology and the ‘legitimization‘ of cryptocurrency.
Adoption And Taxation
South Korea includes a very high taxation rate. However, since 2013, Bitcoin [BTC] and other cryptocurrencies were exempted from capital gains tax. This can be vital sign for traders and investors since they can keep 100% of their whole profits. It ‘additionally‘ makes navigating crypto taxation rather more straightforward. Whereas there are rumors that this tax free stand of the govt. on crypto is about to be changed soon, however no official announcement has still been revealed.
Head of Analytics at Cindicator Simon Keusen commented that their analysis indicates that South Korean influence within the world blockchain business would continue to increase:
“The country is very receptive to the new technology’s. The passion for crypto assets is palpable. Latest legislative initiatives show that the govt. understands the potential of blockchain technology.”
Explaining further, he added:
“South Korea can play a vital role in driving the adoption of cryptocurrencies around the world.”