Chinese Capital May Harm S. Korean Market, Experts Say

Local experts are wondering whether foreign companies will push out local exchanges from the market
31 May 2018   829

After the ban on ICO and crypto trading in China, local investors moved to the South Korean market, whose representatives call this trend dangerous for their own companies, Business Korea reports.

A lot of sites financed from China, including Zeniex, OK Coin and Gate. io, settled in South Korea. Zeniex, for example, receives investment from China's largest cybersecurity company Qihoo 360 and is connected with the crypto-currency media companies Bishije and Jinse Chaijing. The 18th largest exchange in the world Gate. io is also a Chinese site, which now operates from South Korea. Last month, OK Coin came to this market.

Trade in crypto-currencies and their popularity continue to be on the rise in South Korea, while in this country there are no strict rules for the registration of exchanges, which makes it an attractive jurisdiction for Chinese businesses looking for opportunities near home.

While the ban on holding the ICO in China remains in force, the National Assembly of South Korea officially proposed to lift similar restrictions on Tuesday.

Chinese virtual currency exchanges are not yet competitive, but they are key players in the global market. If the Korean virtual money market moves into the system and Chinese exchanges receive real name accounts in the future, the Chinese exchanges will become a big threat to Korean exchanges

South Korean Cryptocurrency Market Participant

While the influence of investors from China continues to grow, experts are wondering whether foreign companies will push out local exchanges from the market unless regulators take appropriate measures.

Authorities to Study Bankrupt QuadrigaCX

Canada Revenue Agency sent a request for access to the tax info from Oct. 1 2015 to Sep. 30, 2018
18 September 2019   43

The Canadian Revenue Agency (CRA) intends to examine corporate declarations that ceased to exist as a result of the bankruptcy of the QuadrigaCX bitcoin exchange, The Globe and Mail reports.

CRA sent a request for access to the tax reporting of the exchange from October 1, 2015 to September 30, 2018, that is, on the date when QuadrigaCX tentatively began problems with the withdrawal of funds.

The E&Y auditor, acting as the trustee of the exchange, intends to discuss the tax request and obtain permission from the court to disclose information.

At the same time, the company noted that one way or another they are forced to comply with the CRA requirements, although this will take a lot of time and delay the payment of compensation to victims.

At the beginning of the year it became known that QuadrigaCX lost access to user funds by $ 190 million, and somewhat later, Indian authorities confirmed the death of the founder of the exchange, Gerald Cotten.