One of the biggest issues in crypto market today is the different rules and regulations that either allow or prohibit activities in the country. In South Korea, Korean Blockchain Association is the one in charge of upholding ethical boundaries as well as transparency in the crypto trading market. And for this reason, the self-regulatory group currently has around 66 members at present.
And since governments have no knowledge of the crypto market, self-regulatory can help in forming rules and regulations by educating and informing governments about the industry and how they can help the industry grow. According to Chin Dae-Jae who is the former South Korean Minister of Information and chairman of the association, “The public interest in cryptocurrencies represented by Bitcoin has soared, and the excessive speculative funding has flowed into exchanges”. He also mentioned that “The association wants to be an effective communication channel between the government and the industry”.
South Korea isn’t the only country that has this kind of industry group. In fact, India is also known for having the Digital Asset and Blockchain Foundation of India that was founded in 2017. Japan is another country that has taken the initiative to make their own self-regulatory body despite regulators being active since what happened to both Mt. Gox and Coincheck.
South Korean Crypto Exchange Bans 11 Countries
Bithumb already decided to ban trading in 11 different countries. These countries include North Korea, Bosnia and Herzegovina, Ethiopia, Iran, Syria, Trinidad and Tobago, Sri Lanka, Iraq, Yemen, Tunisia, and Vanuatu. The reason behind this ban is that inter-governmental Financial Action Task Force (FATF) found the countries not doing the necessary steps in order to fight money laundering, terrorist financing, and other illicit activities.
The changes will be implemented by June 21, 2018. The outright ban will allow Bithumb to note become an accomplice in money laundering and other illegal activities. By the mentioned date, Bithumb isn’t going to accept any users and will disable user accounts from the 11 countries. According to a Bithumb spokesperson, “We will strictly enforce our own rules and protect our investors while we actively cooperate with local authorities”.
Regulatory Concerns
There are countries that have become strict when it comes to the operation of cryptocurrency. Japan has already implemented its rules and regulations for cryptocurrency exchanges operating in the country. And because of regulatory changes, Kraken has decided to cease operations in Japan.
The same is true for Poland’s largest cryptocurrency exchange, BitBay. BitBay is providing access to 29 digital currencies and has around 800,000 active users. BitBay is now relocating from Poland to Malta. According to their announcement, the move will be effective by May 31st. And from September 17th, trade on the exchange will be suspended. By September 18th, users can only withdraw their funds that have been deposited on their account.
Malta is known for its crypto-friendly rules. It has become home to many crypto startup companies. In fact, Malta had the reputation of being called “blockchain island”. Binance, which is originally from Hong Kong also decided to open an office in Malta. Its CEO, Zhao Changpeng mentioned that “Malta is very progressive when it comes to crypto and fintech”.
