South Korean banks have backtracked from their choices to quit overhauling digital currency accounts as crypto financial specialists protested and the government re-talked about its policy. The nation’s 6 noteworthy banks have been informed that they should finish the first arrangement and introduce the framework that would end the anonymous trading of cryptographic forms of money.
South Korean banks have reportedly turned around their choices to quit servicing cryptographic money accounts.
“They will stick to their initial plans to allow clients to open accounts for cryptocurrency transactions using their real names within the month,” Korea Joongang Daily reported.
South Korean banks have reportedly reversed their decisions to stop servicing cryptocurrency accounts. The first arrangement has been for banks to quit issuing virtual accounts and introduce the new government-ordered, genuine name recognizable proof framework. Starting there on, they would just issue genuine (real) name accounts. This new framework is expected to be presented around January 20.
The news outlet detailed:
The country’s financial regulator has pushed banks to stop opening new accounts until they establish a way to verify that the accounts bear the real name of the customer, to prevent money laundering.
A week ago, the controllers started assessing the nation’s 6 noteworthy banks to guarantee they have satisfied their anti-money laundering (AML) commitments concerning virtual account services.
Money Today described
While the inspections will not conclude until January 16, some banks decided to pull out of servicing cryptocurrency accounts “due to strong pressure from financial authorities” and criticism that “banks are supporting virtual currency transactions,”.
A report by Korea Joongang Daily says;
The regulators then informed the 6 banks that their decisions regarding whether to service crypto accounts do not have any bearing on their obligations to install the new real-name system. As such, banks agreed to install the new system as planned. The Korean Financial Services Commission (FSC).
Investor Complaints and bank
Among the banks that chose to quit adjusting digital money accounts was Shinhan Bank. A letter with respect to this choice was quickly sent to the crypto trades right now utilizing the banks virtual accounts services, including the nation’s biggest exchange Bithumb.
Following the bank’s declaration, “some Shinhan clients – conceivably bitcoin brokers – undermined a boycott of the bank,” the publication noted.
AFTER THE NEWS WAS ANNOUNCED, INVESTORS REBELLED AND THE FINANCIAL AUTHORITIES DECIDED TO RE-DISCUSS THE POLICY WHEN THEY ASKED FOR A REAL-NAME CONFIRMATION SERVICE.
Shinhan Bank in this way switched its choice, expressing that the bank will survey its virtual account opening strategy and “will enable stores to existing virtual accounts for now,”
Korea Joongang Daily included, “Shinhan Bank told major local cryptographic money trades, for example, Bithumb and Korbit that they should think of measures to dispose of existing mysterious accounts.”
While it stays feasible for Shinhan Bank clients to store into existing virtual accounts, the government declared on Sunday that anybody doing as such would confront a fine once the genuine name framework is executed.
Take a Crypto Pill
Crypto market is crashing, we all know that, panic sellers are taking over the market with massive sell-off. You can’t control that, just calm down and take a Crypto Pill to make things easy.
Crypto Pill is the term being used by industry leaders to make things calm down from recent fiasco, yesterday a leaked news from CFTC about Bitfinex and Tether made things even more difficult for crypto traders, short sellers went all into the market with massive short bets, and they won, Bitcoin price slipped below $10000 level to as low as $9500, but later on recovered to $10K , but selling pressure is still there.
First South Korea and now US
First it was South Korea, the country with massive trading volumes in crypto market, they announced to ban anonymous crypto trading and ban took place effective from 30th Jan 2018, then a sudden news came from US market when Bloomberg broke the news that US financial regulatory authority CFTC investigating Tether and Bitfinex, but later on it was confirmed that news was from December last year, which made market calm down a little bit after all that tension and hype about US crackdown on crypto currencies.
HODLers will take over market soon
Despite of all this fiasco, Hodlers are still holding their Crypto currencies, they are not giving up and they holding for their dear life, it is very much possible that they take over this market in near future, making another uptrend in coming months.
Venezuela is the cheapest country to mine Bitcoin
Cost of mining one Bitcoin in Venezuela is just $531
Most expensive country to mine Bitcoin is South Korea, where cost of mining one bitcoin is $26,170
After recent crackdown by Chinese Government on Bitcoin miners, most talked about topic in bitcoin community is that which country would Chinese Bitcoin miners chose to shift, as many research firms were working to find the best possible option for the miners, one of the best option is Venezuela, where cost of mining one bitcoin is the cheapest, just $531, as compared to China where cost of mining one bitcoin $3172.
Others with lower costs are Bangladesh, Belarus, Paraguay, Serbia and Trinidad & Tobago. The most expensive is South Korea at $26,170 per coin. The U.S. cost is $4,675.
Calculations for the amount of energy consumed were based on the average usage of three popular types of mining equipment: the AntMiner S7, the AntMiner S9 and the Avalon.
Bitcoin mining consumes a lot of energy and according to one estimate, Bitcoin mining currently consuming energy which is more than 159 countries, including countries like Ireland
Crypto trading volumes are dropping
Volumes in crypto market are dropping, indicating an alarming situation. Crypto market started this year on a good note but later on crashed to low levels, apart from Ethereum, all other major crypto currencies are down for 2018, but one of the most alarming situations in this matter is that trading volumes on different exchanges are dropping to lowest levels in recent months.
For example, on Bitfinex current trading volume of Bitcoin is at around 25000 which at one point of time was as high as 160000 , which means this volume is not even 20% of its peak volume. Similarly in the case of Ripple, current trading volume is 8 Million which at one point of time was 50 million, so there is an alarming situation in that regards because not only price is dropping but crypto trading volume is also dropping dramatically.
Lack of interest?
One of the key questions that analysts are asking these days is that, is it lack of interest from investors that volumes are so low? may be they have found new investment opportunity in the form of S&P 500 and Gold. Most of the analyst think that this low activity is due to the reason that market speculators are currently out of the market and in wait and watch situation to make an entry point.
Calm before the storm?
Such low volumes and price movement in a tight range suggest that this is the calm before the storm, many regulatory authorities around the world are trying to stop crypto trading by either putting complete ban or by introducing tight laws, so speculators and institutional investors are just waiting for a clear picture so that they can make their bet on it, but one thing is for sure that sooner or later market is due for heavy movement in either direction, so day traders need to watch out.
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