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Upbit & Other South Korean Exchanges Suffer With New Crypto Law In Effect

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4 months ago

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On July 19, 2024, the Act on the Protection of Virtual Asset Users came into effect in South Korea. The new crypto law aims to create a more secure environment for virtual asset users and establish a sound order in the virtual asset market. However, the immediate impact on trading volumes across major South Korean crypto exchanges, including Upbit, has been significant. These exchanges reported notable declines in their trading volumes.

Impact On Upbit & Other South Korean CEXs

Upbit, founded in October 2017 by Dunamu, quickly became the largest crypto exchange in South Korea. Moreover, the Upbit exchange has maintained a leading position in the market owing to its user-friendly interface and a wide range of supported cryptocurrencies.

However, in the past 24 hours, Upbit’s trading volume plummeted by 29.4%, dropping to $1.50 billion, according to CoinGecko. Also, this significant decline underscores the market’s initial reaction to the new regulatory environment.

Founded in 2013, Bithumb is one of South Korea’s oldest and most well-known cryptocurrency exchanges. It has consistently ranked among the top 50 exchanges in terms of trading volume and user base. Despite its prominence, Bithumb experienced a 24.7% drop in trading volume, reaching $425.22 million in the past 24 hours.

Coinone, established in 2014, has positioned itself as a major player in the South Korean crypto market. It offers a robust trading platform and various services including staking and lending. Coinone took the hardest hit among the major exchanges, with trading volumes plunging by 38.4% to $23.36 million. Moreover, this steep decline reflects the market’s heightened sensitivity to regulatory changes.

As one of South Korea’s pioneering exchanges, Korbit was founded in 2013 and has been instrumental in driving the adoption of cryptocurrencies in the country. Korbit mirrored the impact on Coinone with a 38.4% to $5.07 million over the past 24 hours.

Also Read: Hong Kong Legislator Questions Transparency of HKMA Stablecoin Sandbox

Overview Of The New Crypto Regulation

The Act on the Protection of Virtual Asset Users aims to address various gaps in the previous regulatory framework, which primarily focused on anti-money laundering measures. Key provisions of South Korea’s new crypto law include:

1. Protection of Users’ Deposits and Assets: Virtual asset service providers (VASPs) must keep customers’ deposits in safe custody at banks and pay interest on these deposits. Users’ virtual assets must be segregated from the VASPs’ assets.

2. Insurance and Reserve Funds: VASPs are required to insure against liabilities from hacking or network failures or set aside a reserve fund for such contingencies.

3. Regulation of Unfair Trading Activities: The Act mandates surveillance for suspicious transactions. It also requires immediate reporting to South Korea’s Financial Supervisory Service (FSS). Those engaged in unfair trading activities face severe penalties, including criminal punishment or financial penalties.

4. Supervision and Sanctioning Powers: The Financial Services Commission (FSC) and the FSS are granted the authority to supervise, inspect, and sanction VASPs. This includes issuing corrective orders, suspending business operations, and imposing administrative fines.

Moreover, in preparation for the new law, financial authorities and VASPs have been working closely to ensure compliance. The South Korea‘s FSC prepared detailed subordinate statutes, and the FSS offered on-site consultations and a roadmap for VASPs.

Additionally, a pilot test was conducted to assess readiness. The Digital Asset Exchange Alliance (DAXA) and 20 virtual asset exchange service providers also developed best practice guidelines to support self-regulation within the industry.

Also Read: Crypto Titans Bet On Donald Trump’s Win For SEC Shake-Up

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Kritika boasts over 2 years of experience in the financial news sector. Currently working as a crypto journalist at Coingape, she has consistently shown a knack for blockchain technology and cryptocurrencies. Kritika combines insightful analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of finance, technology, and emerging trends in the crypto space.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Top 5 Changes Coming to Cryptocurrency Market in 2025

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2 hours ago

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November 17, 2024

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With enthusiasm and excitement around the Spot ETF and Donald Trump’s win in the US election, the cryptocurrency market has witnessed quite a boost in the last few days. After a slow 2023, 2024 was anticipated to be the year of bulls, which has come true to some level. In these 11 months, eight months were positive in terms of Bitcoin growth, especially in November.

BTC created an ATH at $93k and is still trading above $9ok. Many altcoins also had similar gains, and many even achieved new ATHs. However, there are only limited days left for this year to end and the beginning of another, creating another level of excitement about what might be coming next for the crypto market.

Better Cryptocurrency Market Regulation

Since the beginning of the year, all the investors have focused on the US election results and how that will impact the cryptocurrency market. Between Donald Trump and Kamala Harris, Trump has more crypto-friendly approaches, promising better crypto regulation. On the other hand, his biggest competitor, Kamala Harris, also acknowledged the industry and promised to work on its development.

However, with Trump calling himself the Bitcoin president, launching a crypto venture, promising to fire Gary Gensler and other promises, the votes went in his favor. Interestingly, Donald Trump’s win became crypto’s win, as the cryptocurrency market turned bullish since the result declaration.

More importantly, Trump is gathering pro-crypto candidates for higher positions, so the anticipation is high for upcoming crypto regulations. Many analysts and crypto leaders have pointed out the need for clear rules and regulations for the industry, which could help the industry instead of restricting it. More importantly, many have urged that this will begin with Gary Gensler’s resignation from the SEC Chair position.

Remember:

Cycles repeat. ✅

There’s more liquidity in the system now than in 2017.

More institutions are involved.

More partnerships exist.

More crypto regulations are taking shape.

And yet, without any of these, XRP still outperformed BTC and ETH in 2017.

Documented. 📝🔑… pic.twitter.com/rONIJRIGhl

— SMQKE (@SMQKEDQG) November 16, 2024

Eventually, with Trump’s inauguration scheduled for January, the formation of a regulatory framework is likely to happen in 2025.

Increased Crypto Adoption

El Salvador and Bhutan governments are in the limelight for their Bitcoin holdings, as they have openly welcomed this crypto to achieve more financial freedom. Per the Arkham data, Bhutan has more than $1 Billion in Bitcoin holdings. More importantly, it is one-third of the country’s gross domestic product, explaining the extent of BTC adoption. Out of this, the Bhutan government sold $33M BTC through Binance when Bitcoin price surged to new ATH and made significant profits on their initial investment.

On the other hand, El Salvador has been buying BTC since 2021 amid their Bitcoin adoption plan. El Salvador now has more than 6000 BTC, worth billions today. With that, many more countries might follow soon, including the US, as the higher-ups are discussing creating a strategic Bitcoin reserve and collecting more than 1 Million Bitcoins over the next few years. In this, Senator Cynthia Lummis is the biggest supporter and has proposed selling Federal Reserve gold to buy BTC.

There are also positive indications that China might lift its crypto ban, especially with Trump planning to strengthen the US with crypto. Meanwhile, other countries like UAE, Saudi Arabia, and others are rumored to buy Bitcoin for their sovereign wealth funds. With that, 2025 will witness many nations strengthening their economy with cryptocurrency, boosting the crypto market.

Introduction of Better Cryptocurrencies

Thousands of new cryptocurrencies enter the market every year with unique functionalities and profit potential. 2024 was the year of meme-themed cryptocurrencies, where many popular memecoins entertained investors with their new gains. With that, the cryptocurrency market is now worth $3.04 Trillion in market capitalization and $191.9B in trading volume. With the constant development of the industry and new token introductions, the crypto market cap is to grow past $4 trillion in 2025.

More Spot ETF Introduction In Cryptocurrency Market

After Bitcoin and Ethereum Spot ETF, the market might witness many other ETF approvals in the upcoming few years. Many firms have already applied for Solana, XRP, and other ETFs soon after the Ethereum ETF’s approval, and more are likely to happen throughout the year. Nate Geraci, CEO of ETF Institute, also talked about the same in a recent tweet, anticipating the several spot crypto ETF filings in November alone.

Prediction…

There will be several spot crypto ETF filings this week.

XRP, SOL, ADA, etc.

Assume multiple issuers were highly prepared for election results.

No downside to getting aggressive now.

— Nate Geraci (@NateGeraci) November 11, 2024

BTC and ETH ETFs gained extreme popularity among investors. Here, the Bitcoin ETF has gained $98.66B in market cap alone, opening the possibility of approval of other popular crypto ETFs. Interestingly, Solana is likely to take the lead, says VanEck.

Cryptocurrency Market Bull Run

2025 is the year for Bull Run, where all the cryptocurrencies will achieve their prime. With Bitcoin halving in April 2024, crypto users are now awaiting this bullish time, which usually comes months after the halving event. With historical trends and the ongoing market’s bullish behavior, analysts have anticipated the Bull run to hit in early or mid-2025, making it the biggest event of the cryptocurrency market. This would entirely change the market, where continuous gains would fill investors’ pockets, cryptos would grow to new highs, and the market economy would grow.

A bullish cryptocurrency market is much more certain than before, especially with the Trump win. With better crypto regulation, increased adoption, and the rising demand of the crypto industry, 2025 is going to be big. However, it is also important to understand that market fluctuations and macroeconomic factors could change the timeline of these crypto events.

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Pooja Khardia

With a deep-seated passion for reading and five years of experience in content writing, Pooja is now focused on crafting trending content about cryptocurrency market.

As a dedicated crypto journalist, Pooja is constantly seeking out trending topics and informative statistics to create compelling pieces for crypto enthusiasts. Staying abreast of the latest trends and advancements in the field is an integral part of her daily routine, fueling a commitment to delivering timely and insightful coverage

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Elon Musk Explains Why Tether Advocate Howard Lutnick Is Best For US Treasury Role

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5 hours ago

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November 16, 2024

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Elon Musk has expressed his support for Howard Lutnick, CEO of Cantor Fitzgerald and Tether advocate, as the leading candidate for the U.S. Treasury Secretary position in Donald Trump’s administration. Musk emphasized that Lutnick is capable of enacting change, contrasting him with Scott Bessent, another contender for the role.

Elon Musk Views Howard Lutnick as a Change-Driven Treasury Pick

In a recent post on his social media platform X, Elon Musk endorsed Howard Lutnick for the role of U.S. Treasury Secretary. Elon Musk stated that Lutnick would bring the change needed to address the country’s financial challenges. He contrasted Lutnick with Scott Bessent, founder of Key Square Group, whom Musk described as a “business-as-usual choice.” 

Musk underscored that the status quo is pushing the United States toward financial instability and called for public input on the decision.

Musk’s endorsement has amplified the debate over the Treasury Secretary pick, with Lutnick’s approach seen as disruptive compared to Bessent’s steady, market-friendly stance. The decision has become a focal point in the president-elect’s transition efforts.

In addition, the Tesla CEO urged the public and policymakers to weigh in on the Treasury Secretary decision. In his post, Elon Musk suggested that feedback would help Donald Trump make an informed choice. He emphasized that Lutnick’s ability to enact meaningful change aligns with the public’s demand for a revamped approach to economic governance.

To encourage more engagement, Musk emphasized, 

“Would be interesting to hear more people weigh in on this for Donald Trump to consider feedback.”

Scott Bessent Vs Howard Lutnick

Howard Lutnick has been participating in the formation of Trump’s policies as a member of the president-elect’s transition team for economic appointments. His support for tariffs and domestic economic strengthening has drawn both praise and criticism.

Responding to Musk’s endorsement of Howard Lutnick, Chris Pavlovski, CEO of Rumble, highlighted Lutnick’s instrumental role in taking Rumble public and standing firm for free speech.

Nevertheless, despite the Tesla CEO endorsements of Howard, Scott Bessent’s odds of being nominated as Treasury Secretary have risen to 87%. This has seen the Bitcoin price surge, with market sentiment tied to Bessent’s pro-crypto stance. BTC recently climbed to a new all-time high amid expectations that Trump’s appointment would bring clearer crypto regulations.

Bessent, a known advocate for Bitcoin and blockchain technologies, has highlighted their potential to democratize financial markets. His nomination could mark a pivotal moment for crypto adoption in the United States. However, his perceived alignment with traditional financial practices contrasts with Howard Lutnick’s disruptive approach, presenting a stark choice for Trump.

Meanwhile, Donald Trump will make his decision on the Treasury Secretary position in the coming days. Both Howard Lutnick and Scott Bessent are considered frontrunners, with lobbying efforts intensifying. 

Lutnick’s role as co-chair of Trump’s transition team and now Elon Musk’s endorsement has boosted his candidacy. The announcement is likely to have far-reaching implications for U.S. economic strategy. 

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Ripple CLO Criticizes Gary Gensler’s Justification For Crypto Lawsuits

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9 hours ago

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November 16, 2024

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Ripple Chief Legal Officer (CLO) Stuart Alderoty has criticized the US Securities and Exchange Commission (SEC) Chair Gary Gensler following his attempt to justify the crypto lawsuits that the Commission has instituted. The Ripple CLO’s statement has come amid speculations that Gensler could soon resign as the SEC Chair.

Ripple CLO Criticizes Gary Gensler’s Claim On Crypto Lawsuits

In an X post, the Ripple CLO criticized Gensler’s attempt to justify his four-year-long political crusade to destroy crypto by claiming he just continued what Jay Clayton began. Stuart Alderoty states this is like “burning down the house” and pleading innocence by arguing that Clayton lit the match.

Alderoty was referring to Gary Gensler’s speech in which he discussed the crypto industry. Gensler stated that when he arrived in 2021, the Commission under Jay Clayton had already brought 80 actions, including the Ripple case. The US SEC Chair remarked that this lawsuit was against participants in the crypto markets who were not following the “common-sense rules” of the road.

However, the Ripple CLO believes that the fact that Clayton instituted these lawsuits doesn’t justify all that Gensler has done in his four years as the SEC Chair to hinder the crypto industry’s growth. Gensler is known for his anti-crypto stance and has argued that most crypto assets are securities.

Interestingly, Gensler also hinted in that speech that he would likely resign soon enough as the SEC Chair. Individuals like former SEC official John Reed Stark have called on Gensler to resign since Donald Trump won the US presidential elections.

Meanwhile, the SEC looks to be getting a taste of its medicine. 18 US state attorney generals have filed a lawsuit accusing the SEC of a constitutional overreach in crypto regulation.

The Next SEC Chair Will Be Pro-Crypto

Amid the Ripple CLO’s statement, journalist Eleanor Terrett has confirmed that the next US SEC Chair will be pro-crypto. However, she suggested that the crypto industry and community should focus more on who becomes the next Commodity Futures Trading Commission (CFTC) Chair.

This came as she cited sources who told Fox Business that the Donald Trump administration is looking to give the CFTC more responsibility regarding crypto regulation. She added that it is unclear how the CFTC will go about this, but it will require more funding than it currently has.

Meanwhile, it is worth mentioning that Ripple CEO Brad Garlinghouse recently expressed enthusiasm about the shifting regulatory landscape. Ripple CLO Stuart Alderoty had also recently called on Donald Trump to work towards fulfilling his promise of making the US the crypto capital by ending the SEC’s regulation-by-enforcement approach.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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