“There is no intention to ban cryptocurrency (market),” Such were the words said by Kim Dong-yeon, Minister of Finance of South Korea to international media in an effort to state a country’s official position against a series of Fake News, rumors and negative analysis that began to spread all over the internet and media because of some statements made by korean officials which were exaggerated or taken out of context.
These kinds of statements led the market to think that eventually and unexpectedly, cryptocurrency trading could be declared illegal which caused many Asians to sell their coins in an effort to protect their money by changing it to FIAT currency.
Such actions, added to the computer attacks on important exchanges and bitcoin’s traticional bearish behavior observed by the beginning of each year, caused bitcoin to suffer one of the biggest falls of its history.
It should be taken into consideration that the Asian market is one of the most important in terms of volume, with South Korea, China, and Japan in the lead, so it is not difficult to imagine that after China’s actions to combat bitcoin trading, a possible interest of South Korea to follow in its footsteps did not generate a positive environment for the Asian cryptocurrencies market.
Efforts on trading regulations and crime fighting
South Korea’s intentions are to regulate trading, in order to provide protection to investors and to prevent illegal operations such as tax evasion, money laundering, and selling of illegal goods, activities that are much easier done if cryptocurrencies are used.
To avoid that, they established a series of rules which allow only real-name bank accounts to be used for cryptocurrency trading (amongst other measures taken or soon to be announced).
With regulatory actions similar to the previously mentioned one, they seek to combat the rate of crimes committed with cryptocurrencies, which generated damages of approximately 637.5 billion won ($ 596.02 million) officially detected (a figure that could be even higher in the case of some unpunished and unnoted crimes).
Maybe with such declarations, the market reacts positively with an increase in confidence that encourages bitcoin buying again on the day to day Asian traders. This is a positive step in the consolidation of bitcoin as a solid medium of exchange.
Likewise, recently hacked crypto exchange Coincheck declaring that traders will be refunded also helps to provide strong confidence and secure feeling for the Asian market.
Asia’s biggest Exchange binance.com rates BTC / USDT at around 10,000 $ with a short-time MACD change reflecting a probable bullish run after such declarations were known