South Korea has banned an ICO, but cryptocurrencies are holding

Now, it seems, the financial regulators of many countries are starting to do what it was long overdue to do - to decide on their attitude to cryptocurrencies and fundraising with their help. True, which states, contrary to the expectations of crypto-activists, prohibit an ICO and do not recognize cryptocurrency as an official means of payment.

China is so far the most consistent in its policy of rejection of cryptocurrency. Not so long ago, the regulators of this country banned the holding of ICOs, obliging the organizers of the primary tokens that were already held to return the funds to investors. Also, China has banned the owners and management of cryptobirge to travel abroad, obliging them to cooperate with law enforcement officers at any time. After China, the South Korea announced a ban on ICO.

This happened after the cryptocurrency market began to gradually change due to the shift in financial flows associated with the Cue and other crypto-coins from China to other countries. Kim Yong-beom, Vice-Chairman of FSC Financial Regulator of South Korea (Kim Yong-beom), said that yes, the volume of the cryptocurrency market in the country has increased, but there have been more frequent cases of fixing various kinds of scams related to the crypt.

As a result, virtually all types of ICOs were banned in the country, saying that trading in virtual currencies should be controlled by the state. The ICO has resolved that those organizations and individuals who still go against the ban will face fines. True, officials do not report how exactly the organizers and participants of the ICO will be punished.

At the same time, the Bitcoin rate almost did not respond to all these events, which suggests that the volatility of the cryptocurrency rate decreases over time. Previously, almost any negative news led to a significant drop in the rate of the cue ball and some other cryptocurrencies. For example, as we have already written, after the ban on ICO in China, the rate fell by more than a thousand USD. Now the fall was 2%, followed by a quick recovery of the previous course.

It is possible that, against the background of negative news, the participants of the cryptobank take into account the positive news for cryptocurrencies. For example, in Japan, regulators approved 11 companies as exchange cryptocurrency operators. It is reported that these operators must meet certain requirements. In particular, they were charged with creating a computer infrastructure to ensure the normal course of exchange processes. In addition, these same companies must ensure the identification of clients and prevent the intentions of intruders, for example, to counteract money laundering. Nevertheless, so far Japan is one of the most loyal countries to Bitcoin and other cryptocurrencies.

Whatever it was, but, most likely, after China and South Korea, other countries will also take up cryptocurrency. Bitcoin and altcoins are unlikely to begin to ban, but the desire of many governments to regulate this market is noticeably strong. So far, there is nothing critical, so the market is more or less stable.

By the way, according to the analytical company CryptoCompare, the volume of the European market of cryptocurrency exchanges ranks fourth after such countries as Japan, the United States, and South Korea. However, representatives of the same service believe that European regulators are a little less friendly with Bitcoin and Altcoin than the officials of the countries mentioned above.

Be that as it may, officials, as well as many market players, consider the key problems of the cryptocurrency infrastructure of various security vulnerabilities, the lack of regulatory and legislative regulation of the companies that are engaged in this market. As a result, institutional investors find it difficult to work with large volumes, especially in countries where the government doesn’t welcome the free circulation of cryptocurrencies. Nevertheless, the market gradually adapts itself to any working conditions, including the legislative restrictions of China.

After the Chinese cryptocurrency exchange stopped (not all, but many), there was a change in the cryptocurrency market. In just a few weeks, Europe bypassed China immediately by 3%. Up to this point, the European stock exchanges occupied only 2-3% of the global “pie”. And recently, the largest German platform has promised to add support for Ethereum, which will further strengthen the European market.

In their message on Twitter, representatives of the exchange say that initially the Altcoins were not very popular, so the company did not pay attention to them. But for many months in a row the influence of altcoins has been growing noticeably, so the same Ethereum was decided to be supported. But even without this event, Europe ranks third in the volume of trade in ether - about 7.5% of the turnover.

In general, for the time being, one thing is clear - there should not be a significant drop in the rate. Bitcoin holds up.


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