A lot of worry and concern has been surrounding the entire crypto space ever since the recent South Korean crypto regulations were passed in South Korea. Some of the new regulations include; new laws for trading platforms, stopping anonymous registration, and imposing a possibility of regulators to short down exchanges should need be.
Role South Koreans play in the crypto space
A new study was carried out by Saramin (a Korean website) in which it found 31% of salaried South Koreans have invested in cryptocurrencies with an average investment amount of over 5,66 million won. The poll was carried out with 941 hired workers, 80% of whom range between 20 and < 40.
44% respondents have invested less than 1 Million won, 18.3% invested 1-2 million won, 9.8% invested 2-4 million won, 7.8% spent 4-6 million and 12.9% invested over 10 Million won.
Reasons for their investments include;
The profitability of crypto investing
Fast and quick way of sending money
Small amount of start-up investment cost
This data makes South Korea the 3rd biggest players in the entire crypto space after Japan and the US. They also account for 20 % of worldwide bitcoin trading. This, therefore, means South Korea is one of the biggest players in the entire market and if at all there was an outright ban, it will impact the market.
Nevertheless, this impact can only be short-lived as we see an influx of new investors and enthusiasts from other countries where trading and investing are still less regulated. China also imposed stricter regulations a couple of months back but this didn’t stop cryptocurrencies as it only slowed cryptocurrencies for a short while before it took off again. Furthermore, after the announcement was made, Bitcoin saw a $1000 drop in price but has since been going up again gradually.
More importantly, the recent South Korea crypto regulations does not imply they are putting a complete ban on cryptocurrencies but rather stricter regulations. This is something which they have done in the past and also other countries are doing including the EU and the US.
We, therefore, believe the crypto market is still well and alive irrespective of the recent South Korean crypto regulations. What are your thoughts on this developing story?
Let us know in the comment section below.