Cryptocurrency News

A Great Start to Crypto Positivity – The South Korea Crypto Bill

After India’s great news of the Supreme Court lifting the ban on Cryptocurrency ,comes South Korea’s Crypto Bill.

The South Korean Crypto industry is rejoicing and why not, the South Korean parliament, the National assembly has finally given the green signal to the passage of the country’s first Cryptocurrency legislation. The special financial transactions which were last modified in November 2019 now will present a formal structure for the industry to operate on. 

Hashed CEO, Simon Kim also is relieved because the uncertainty surrounding the regulations was under thick fog. Cryptocurrency under the law will now be segregated under the asset class by various institutions and virtual operators. 

Several advocates, big and small were after the passage of the law, and with that happening, they have finally heaved a sigh of relief. With its legalization, dealings in crypto will come under the tax net. Despite this, the one benefit that it will provide is that it will attract more investors who had been shying away considering it too risky a proposition. The specifications related to crypto are based on G7’s FATF guidelines elucidating rules on what role the government will play to ensure that these asset providers namely crypto exchanges and brokerages are well within the law when they operate on it. 

As per the reports, the house assuredly voted for the bill with 182 votes registered in favor of the law with zero against it. Looking at the importance of the bill, the house also had zero absenteeism. The bill will be effective in March next year which will have a clear blueprint of the taxation system also. The concept of anonymous trading which was prevalent earlier will get eliminated thanks to the new law. Financial Intelligence Unit or FIU will be the administrative body that will regulate the industry. 

It was feared that the onslaught of coronavirus might delay the bill as the parliament premises were temporarily shut. Due to this, the pendency of bills to heard was mounting up which the industry insiders feared would cause further delays and snags in the process. But thanks to the deep clean process on the premises, the parliamentary sitting was successful and many bills including this were passed. The banks who hitherto questioned such dealings based on legal grounds will not take a 360-degree turn as the much-needed authenticity has now been commissioned. 

Close on the heels of India, Ukraine, and Germany, South Korea has evolved and with the picture of legality setting in, it might just become a powerful source of running the economy. 

Photo Credit – Flickr

South Korea’s Kakao To Integrate Crypto Wallet

Samsung’s integration of a Cryptocurrency wallet will be followed by South Korea’s most prominent internet conglomerate Kakao. Kakao known for KakaoTalk, KakaoPay, KakaoTaxi and many other platforms will integrate Crypto for it’s 44 million users.

KakaoTalk Flexes Cryptocurrency Muscle

A Korean publication fnnews released details from industry executives explaining that the popular chatting platform of KakaoTalk will allow users to run Blockchain applications, and even send, receive and store Cryptocurrencies. Hence users will be in control of making payments, with the touch of a button through the messaging application.

As for Blockchain applications, they will run simultaneously on the chatting platform, like the other mobile games and applications already on it.

Over 80% of the population of South Korea use Kakaotalk and so could be a massive step for Cryptocurrency adoption.

Kakao’s successful $90 million raised through a private coin offering has ensured Blockchain can further be worked upon.

Korea A Leader in Blockchain and Cryptocurrency

South Korea has been taking significant steps towards the digital asset revolution, with not only KakaoTalk exploring Cryptocurrency but also Samsung. Samsung being a South Korean firm known around the world for its smartphone, has recently released the S10 with a Cryptocurrency wallet integrated.

Kakao has its arms stretched in other Blockchain and Crypto investments such as Dunamu which is the operator of Upbit Cryptocurrency exchange.

Mass Adoption of Cryptocurrency

Most of the Cryptocurrency community is working towards mass adoption drives for the digital assets. Ryan Sean Adams, the founder of Mythos Capital, explained it best when he explained the need for devices such as Samsung’s S10 as it will sell almost 40 million units which are 20 times more than the overall quantity of traditional hardware wallets such as Ledger and Trezor sold.

Hence with Kakao having a huge following in South Korea, it will be one of the most sought after news given that the Cryptocurrency enthusiasts are looking for either institutional investors or mass adoption to help get the bulls back in the market!

Influential South Korean Actor Invests In Crypto Startup – Seamon

A popular actor in the South Korean film industry, Bae Yong-joon has been reported to have invested in a Korean Cryptocurrency startup called Seamon. The news was disclosed from South Korean local news outlet Hankyoreh.

What is Seamon

Seamon is a startup by a Norwegian based company called Ocean Supreme known for exporting high-quality Salmon from Norway to Japan. It will utilise Blockchain and Cryptocurrencies in settling the global seafood transactions and sales. The project is aiming to make transactions transparent, reduce unnecessary expenses and achieve faster international transactions given that seafood is a highly exported item.

Blockchain is also known to make supply chains more efficient. One known example is Intel’s development of Sawtooth which tracks the supply chain of seafood from the catching in the ocean to being eaten at the table. Internet of things or better known as IoT sensors are used to track and estimate locations, temperatures, humidity, motion and even shocks. Such a use case is essential in ensuring the seafood is safely caught in regions where extinction is not taking place for the particularly caught seafood, and in providing that the seafood is fresh enough to be eaten.

Influence of Yong-joon for Korea’s Cryptocurrency market

Bae Yong-joon is famously known for his roles in movies such as Winter Sonata and The Legend. An actor of his recognition investing in the cryptocurrency sphere brings about trust and may lead to adoption amongst his fans.

The amount invested by Yong-joon is not disclosed; however, is said to be more than $10,000 but not in the tends of thousands in Dollars. He was initially interested in being a part of the team as an advisor however projected into becoming an investor. His main reason for investment in Seamon was an interest in the seafood industry.

Thus the change of sentiment in the South Korean Cryptocurrency market could change given that the bear market led to massive losses amongst ordinary citizens who invested hoping for a fortune.

Kakao Raises Millions for Blockchain Unit – Ground X

Kakao, a South Korean internet company known mostly for it’s messaging application has made tremendous progress for its Blockchain and Crypto unit. A whopping $90 million has been raised through a private coin offering. Ground X is working towards another $90 to $100 million in order to further develop its Blockchain platform.

Kakao’s Dominance In South Korea’ Tech World

Kakao was established in 2014 and gained prominence from KakaoTalk which is a free mobile instant messaging application for smartphones. KakaoTalk has 220 million registered users and 47 million active monthly users.

Kakao’s Blockchain unit Ground X Corp dubbed Klaytn could help Kakao in establishing itself in Blockchain at a time when it’s creating a buzz and gaining a lot of ground. KakaoTalk also has plans for utilising the Blockchain platform. Ground X Corp has already partnered up with 26 companies such as popular game developer Wemade Entertainment Co. to run applications on the platform.

The Rise of Messaging Applications on Blockchain

Whatsapp and Telegram, which are both the most popular messaging applications currently used have already shown an active interest in Blockchain and Cryptocurrency.

Telegram especially has made an enormous impact in the ICO market, with $1.7 billion raised last year, while Whatsapp coin is reported to be launched later this year. Whatsapp is reported to roll out a digital currency pegged to the US Dollar and will be used in India first for the huge population to send money to and fro the messaging platform.

Ground X currently has offices in South Korea and Japan and is working towards achieving mass adoption of Blockchain services. Further plans of working with the Seoul Digital Foundation, which is part of the Seoul Metropolitan Government will help gradually decentralise Korea’s governmental services.

South Korean Government Hold First Crypto Debate

According to local reports, the South Korean National Assembly held a crypto regulation debate, which was put together by local cryptocurrency exchanges. Both the government and crypto entrepreneurs debating ways to better the market.

Local crypto exchanges organise the debate

The debate was put together by seven local cryptocurrency exchanges including Gopax, Upbit, Bithumb, Coinone, Coinplug, Hanbitco and Korbit. The discussion brought together key players from the government and the crypto community. Among those who attended was Kim Byung-Wook, a Democratic Party member, representatives for the Liberty Korea and Bareunmirae parties and the financial watchdog, the Financial Services Commission (FSC).

Reportedly, the debate focused on the regulatory scope of the government on cryptocurrencies and need for Anti-Money Laundering (AML), customer protection and Know Your Customer (KYC) practices among other crypto activities.

Before the event, Kim Byung-Wook said,

“There is a debate on the blockchain, but since there is no discussion on the cryptographic exchange, it will be a place to establish measures to protect investors and joint tasks to operate the exchanges safely and efficiently.”

Importance of exchanges and need for regulations

The debate comes a month after the South Korean government and financial authorities officially allowed banks to offer services to crypto exchange and blockchain related businesses.  Despite authorities allowing ban and crypto transactions, small exchanges are still struggling to get banking services from large commercial banks. The debate sought to have the government and relevant official follow up on the matter.

In addition, the debate seeks to explain the importance of crypto exchanges and practical regulatory framework in the country. According to Hankyoreh, a media outlet in South Korea that has assisted the cryptocurrency exchanges in hosting the debate, the government wants digital trading platforms to take upon a critical role in the market. They should be in the front line in providing liquidity to investors and recognize the importance of a transparent and efficient cryptocurrency exchange market for the long-term growth of the blockchain space.

Since the beginning of this year, South Korea has taken an active role in ensuring the growth of blockchain technology. With increased new business in the crypto space, both crypto exchanges and government agencies agree there is a need for regulatory frameworks.

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