Bitcoin

Impact

South Korean regulatory crackdown against crypto has put significant pressure on crypto trading and crypto exchanges, causing an uptick in uncertainty among traders. The move comes as regulators in <a href="https://coingape.com/south-korea-to-unveil-stringent-rules-for-digital-assets-heres-all/" target="_blank" rel="noopener">South Korea</a> push to strengthen regulation under the new digital asset law that takes effect later this month. Experts believe that the guidelines could pose significant challenges to some altcoins. 
<h2 id="south-korea-tightens-crypto-trading">South Korea Tightens Crypto Trading</h2> 
The Financial Supervisory Service of South Korea on July 4 stated that a system to increase oversight and monitor unusual crypto trading activity is underway. Crypto exchanges are notified to feed data and details into the system as the Virtual Asset User Protection Act goes into effect on July 19. 
While mass delisting is denied by South Korea’s Digital Asset Exchange Alliance (DAXA), the crypto body launched a 6-month review of over 1,300 <a href="https://coingape.com/south-korean-exchanges-vow-to-protect-altcoin-trade-amid-regulations-heres-all/" target="_blank" rel="noopener">digital assets</a> to ensure compliance with the legislation. 
Matt Younghoon Mok, senior foreign attorney and partner with Lee &amp; Ko in Seoul, said FSS guidelines “could pose significant challenges for altcoins that cannot swiftly comply with regulatory requirements.” Trading over normal volume and price ranges, large transactions, and relatively slow execution are red flags that could lead to severe penalties. 
Also Read: <a href="https://coingape.com/ripple-vs-sec-update-lawyers-reveal-how-sec-reply-impact-final-decision/" target="_blank" rel="noopener">Ripple Vs SEC Update — Lawyers Reveal How SEC’s Reply Impact Final Decision</a> 
<h2 id="why-global-crypto-market-recovery-could-delay">Why Global Crypto Market Recovery Could Delay?</h2> 
South Korea holds a prominent position in the global crypto market, with the <a href="https://coingape.com/korean-won-overtakes-us-dollar-as-top-fiat-for-crypto-trading/" target="_blank" rel="noopener">Korean won</a> recently surpassing the US dollar as the most-used currency for crypto trading. Approximately 10% of the country’s population has exposure to&nbsp;digital assets, with smaller coins comprising the bulk of trading rather than Bitcoin. 
According to the latest report by Korea Forbes, Upbit and Bithumb crypto exchanges are the top-ranked crypto apps in South Korea. However, the trading volumes have declined across the top crypto exchanges in South Korea, as per Kaiko. 
<img decoding="async" class="aligncenter wp-image-205886" src="https://coingape.com/wp-content/uploads/2024/07/screenshot-dataplus.kaiko_.com-2024.07.04-15_43_53-1224x544.jpg" alt="market share " width="796" height="354" srcset="https://coingape.com/wp-content/uploads/2024/07/screenshot-dataplus.kaiko_.com-2024.07.04-15_43_53-1224x544.jpg 1224w, https://coingape.com/wp-content/uploads/2024/07/screenshot-dataplus.kaiko_.com-2024.07.04-15_43_53-300x133.jpg 300w, https://coingape.com/wp-content/uploads/2024/07/screenshot-dataplus.kaiko_.com-2024.07.04-15_43_53-768x341.jpg 768w, https://coingape.com/wp-content/uploads/2024/07/screenshot-dataplus.kaiko_.com-2024.07.04-15_43_53-1536x683.jpg 1536w, https://coingape.com/wp-content/uploads/2024/07/screenshot-dataplus.kaiko_.com-2024.07.04-15_43_53-150x67.jpg 150w, https://coingape.com/wp-content/uploads/2024/07/screenshot-dataplus.kaiko_.com-2024.07.04-15_43_53.jpg 1921w" sizes="(max-width: 796px) 100vw, 796px"> 
Also Read: <a title="Crypto Market Crash: Why Bitcoin And Altcoins Are Falling" href="https://coingape.com/crypto-market-crash-why-bitcoin-and-altcoins-are-falling/" target="_blank" rel="bookmark noopener">Crypto Market Crash — Why Bitcoin And Altcoins Are Falling</a> 
The post <a href="https://coingape.com/crypto-crackdown-by-south-korea-to-delay-global-crypto-market-recovery-heres-why/">Crypto Crackdown By South Korea To Delay Global Crypto Market Recovery, Here’s Why</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Crypto Crackdown By South Korea To Delay Global Crypto Market Recovery, Here’s Why

Table of Contents

Coingape News Media

Other articles published on Jul 4, 2024

Mt. Gox Activates Wallets Ahead $9B Bitcoin & BCH Payout, What’s Next?

Four Altcoins Experience Significant Losses

Solana ETF Launch Tied To 2024 Presidential Election, VanEck Research Head Explains

LayerZero token ZRO surges 52% in 7 days: What’s behind the rise?

Bitcoin Whales Trigger Market Anxiety

Taurus enhances Zand Bank’s crypto, tokenization services in UAE

Join our free newsletter for daily crypto updates!