Is Rising Bitcoin Volume In Korea Indicating Price Rise?

One of the key regions for bitcoin trading has seen an increase in trading volumes. Korea’s influence leads to Kimchi effect. This results in a 20 to 30 percent higher price on Korean stock markets compared to other places.

Is This a Sign of Rising Prices in the Market?

Korea is a key player in global crypto trading. has a place. Trade in Korea is believed to be the reason why Bitcoin has reached its high of $20,000.. Rumor has it that the country is trying to establish a friendly regulation for crypto.

BTC/KRW volumes are high compared to any fiat currency, including USD.. Besides, Korean exchanges such as Coinbit and Bithumb; more than once in the past months, they have shown that they are on the way to become the market leader worldwide with their trading volumes.. Kimchi was seen a few times, but not as long as in 2017.. But some experts believe that Kimchi will be seen again soon as volumes soar.

An analysis shows that Korean Won volumes have been pretty quiet since the start of 2018.. But that has started to change over the past few months.. In some cases these gains were so great that the KRW accounted for 50% of the entire market.

These trends are similar to those that occurred during the same periods in 2017.. This was before the biggest price spike in the history of the crypto market. Perhaps this is a sign of an increase that could happen again.

Regulations in Japan

While Korea is causing a spike, Japan may soon join it. Country plans to give crypto self-regulated status. Support will be needed to remove any centralized control from crypto. It could also encourage Japan to enter crypto trading.

The Financial Services Agency has allowed the Japan Virtual Currency Exchange to regulate and sanction the exchange’s breach.. Under this new model, Japan’s Financial Services Authority will give the industry the right to impose rules that protect clients’ assets, establish principles and prevent money laundering.. This association will also check the compliance of exchanges.

Why Is This Model Needed?

This was needed because the industry was moving so fast, according to an official at Japan’s Financial Services Agency.. Thus, it will be better to set the rules in real time rather than waiting for bureaucracy.. This is nothing new, there is a self-regulating system in the brokerage and security industry as well.

The crypto association stated that they want to ensure they can create an industry that is trusted by their clients.. In 2017, Japan became the first country to regulate a crypto exchange. This encourages technological innovation and customer protection. Every exchange needs to be approved by Japan’s Financial Services Authority.

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