The Xrp Chat user brandnewrenaissance posted some updates about the situation in South Korea and the market regulations. We are going to post his accurate analysis below, as we know his informations are corrects and not misleading.
“Many people in Korea were hesitant to invest because the direction the government wanted to take was unclear. Additionally, there were plenty of trolls in Korea scaring crypto investors saying the government would close all crypto exchanges. It appears the uncertainty about government regulations may have dissipated
Originally, it was planned that all exchanges were not going to open new accounts until about January 21st so the government could match all crypto exchange accounts to a real bank account.
However, yesterday’s announcement by the minister of justice caused confusion. Also, the Shinhan bank created confusion by stating that it was likley they may not allow real bank accounts to be linked to a new crypto account after then. This caused anger among many people who threatened to close their Shinhan bank accounts and take their business elsewhere. Shinhan, upon realizing it caused more anger than expected, reversed course and said this wasn’t their final decision and they would delay making this decision.
This afternoon, the government called a meeting with all banks in Korea. It was unclear why the meeting was called. However, right around the time when the meeting should have ended there was an uptick in trading and the prices of coins started to rise, as if people in the know started their usual buying/trading patterns.
The news on the street, unconfirmed, is that the government said they would follow their original plans and allow new crypto accounts to be opened after the 21st.
The feeling is that the government will not close exchanges and instead move towards regulation and taxation of cryptos, and allow new exchange accounts after the 21st.
There seems to be the start of a return of some normality in the Korean crypto market.”