Bithumb and Korbit, two of the biggest digital currency exchanges within the South Korean marketplace, have introduced that Kookmin bank deposits and withdrawals will be disabled by the end of January. Kookmin bank, the largest economic institution in South Korea, has determined not to assist digital currency exchanges and offer digital bank accounts to digital currency traders. On South Korean buying and selling systems, every investor is supplied with a digital bank account with which they can withdraw and deposit Korean won, while not having to directly move finances from and to actual bank accounts.
During the last few weeks, local traders were worried with the abrupt decision of Kookmin bank to shut down digital bank accounts released on South Korean digital currency exchanges. Many investors feared that different banks might comply with the choice of Kookmin bank and actually reduce financial links to digital currency exchanges. Earlier this week, Korbit informed its customers and investors that by the end of January, the exchange would start accepting deposits and withdrawals from Shinhan bank accounts rather than Kookmin bank accounts.
The statement sent by Korbit to its customers states:
“As formerly announced, so as to follow the identity and anti-money laundering regulations being enforced by the authorities, the modern South Korean won deposit method will be terminated by the end of January 2018. To use the new South Korean won deposit technique, that is slated to be applied within this month, you need to have a Shinhan bank account registered beneath your legal name. Please use this time to create a banking account at Shinhan bank. We are able to follow up with further instructions on the way to input the new South Korean won withdrawal account data on Korbit.”
With the latest statement of Korbit, traders have become relieved and began not to worry about the opportunity of a digital currency buying and selling ban. However, in an official document, the South Korean authorities stated that it had asked monetary institutions and banks within the regulated finance business to prevent offering banking services to digital currency exchanges.
This week, numerous South Korean media retailers stated that an excessive ranking economic authority in South Korea claimed the authorities is making plans to permit financial institutions to list bitcoin futures, as the united states Commodities and Futures Trading Commission did in 2017. The authorities’ official defined that the list of bitcoin futures might stabilize the marketplace and permit the bitcoin exchange marketplace to mature, decreasing premiums and excessive speculation by South Korean traders.
In the approaching months, the South Korean authorities will probably roll out sensible policies to defend each traders and organizations. In a statement launched in December, a member of the digital currency regulation task force mentioned that the authorities would comply with the regulatory roadmap established by main markets like Japan and the United States.
Given the modern nation of the marketplace and the government’s choice to not impose a buying and selling ban within the short-term, the South Korean digital currency exchange marketplace has been positive during the last few days, as shown by the growing price and volumes of digital currencies in each the South Korean and worldwide marketplace.