In a speech made at a recent cryptocurrency conference, a representative of South Korea’s banking association noted that altcoin trading was becoming a major concern as it began to make up an increasing percentage of the country’s foreign exchange transactions. The representative noted that the number of exchanges and altcoin markets operating in the country was growing steadily, as was the value of these exchanges’ daily trading volume.
The South Korean Banking Association has set out on a campaign to raise awareness on the speculative nature of the cryptocurrency investing environment, hoping to reduce the number of speculators lured by the promise of quick investment and large gains. The association is currently developing a campaign that is openly critical of cryptocurrency speculation, followed by a series of posters and ads distributed in subway and bus stops. Some of the posters mockingly depict people holding up signs explaining to their family members that they invested in cryptocurrencies, claiming that the investment has become too complicated to explain to others. The caption of the posters reads, “What? I lost the money I saved for a year in one minute?” With the South Korean Banking Association’s new campaign, hopefully a lot more
The Banking Association of South Korea recently stepped up the regulatory debate in the country by expressing concern over the high volume of altcoins trading. The Korean Banking Board (KFB) has asked its members to review the trading volumes through altcoin operations of their cryptocurrency exchanges.
Altcoin trading volume surpassed bitcoin last weekend in South Korea
According to the Korea Herald, the KFB is concerned about the potential risks South Korean banks may face from the high volume of altcoins trading if they offer their services to domestic virtual currency exchanges.
The warning follows a significant increase in altcoins transactions, which have reached about 95 percent, according to media reports.
A spokesperson for the Korea Banking Federation commented as follows:
One of the criteria we recommend is the safety of digital assets, which can be measured by the number of digital coins on the exchange. When an exchange trades too many digital assets, it takes on more risk.
In a 24-hour period last Saturday, bitcoin (BTC) volume on the national Upbit exchange was just 4.26%.
At the same time, the banking association is calling on local banks to strengthen existing rules to monitor and report suspicious transactions by cryptocurrency exchanges, according to the revised Financial Transaction Information Reporting and Use Act.
Tone is tough on South Korean regulators on cryptocurrencies
All in all, many news stories about the regulation of cryptocurrencies in South Korea continue to make headlines in anticipation of the aforementioned ruling.
Moreover, the chairman of the Financial Services Commission (FSC), South Korea’s top financial regulator, Eun Soon-soo, recently warned that all exchanges for digital assets in the country could be closed. But his harsh rhetoric against the industry has not gone down well with the national cryptocurrency community.
As Bitcoin.com News reported on the 28th. According to April 2021, the South Korean presidency website has received thousands of petitions from angry citizens between the ages of 20 and 39 calling for Mr Un’s resignation.
At the time of publication, there are approximately 200 virtual currency exchanges in South Korea.
What do you think of the South Korean Banking Association’s warning? Let us know your comments in the section below.
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