Several new exchanges to open up in South Korea

Despite new regulations several new exchanges plan to open their service in South Korea
12 February 2018   269

On January 30 South Korean government enforced new regulations for local operating digital currency exchanges. Know-your-client approach forces exchanges to operate with real-name accounts to deposit fiat. This approach left only six major banks with ability to service cryptocurrency accounts, even then the banks as of now are just converting existing accounts and not creating new ones. Only four cryptoexchanges are operating above the law as of now – Bithump, Upbit, Coinone and Korbit. The banks refuse to issue new name accounts for cryptocurrency exchanges citing regulatory uncertainties and security concerns.

But new exchanges aren't deterred by this problem. Even without providing full range of services, namely fiat deposits, two new local exchanges plan to open up shortly.

Zeniex, the new crypto exchange, plans to start its operations on February 12. The launch date was postponed for a month because of the aforementioned regulations, and they wouldn't provide fiat deposits initially. For now investors are restricted to buying only with Bitcoin. From the beginning the exchange will operate with Bitcoin, Bitcoin Cash, Ether, Ethereum Classic, Litecoin, Quantum, EOS, Bytom, and 0x.

Another newcomer to the market is Dexko, which started accepting pre-registration to begin trading on March 15. Initially the exchange will support Bitcoin, Ether, Bitcoin Cash, Litecoin, Ripple and 5 other as of now unspecified cryptocurrencies. Pre-registration is open from February 5 to 25. Pre-registrered users will be exempt from trading fees for a month. Dexko is now going through the legal hassle of official registration to provide won-based trading but we'll have to wait for further news.

Also, two Chinese exchanges are planning to expand their operations to South Korea in the near future. Huobi and Okcoin were two of the largest Chinese crypto exchanges before Chinese government closed down all cryptocurrency trading last year. Okcoin has reportedly reached a final agreement with Korean NHN Entertainment Corp, so that Koreans will operate local server and provide support, while Okcoin themselves will be responsible for providing trading systems. They plan to trade more that 60 different cryptocurrencies against Korean won.

Huobi also plans to enter the market in the first quarter of this year, as reported by the Investor.

Bank of America: Cryptocurrencies Are a Threat

Bank of America (BoA) has admitted to US regulators it can not pretend any longer that cryptocurrencies are not a threat
23 February 2018   75

On February 22, the report was filed with the US Securities and Exchange Commission (SEC). It listed a range of economic, geopolitical, and operational risks that the Charlotte, NC-based bank faces as it heads into the new fiscal year. Crypto adoption was on the list for the first time.

Bank of America (BoA), which recently banned purchasing of crypto with credit cards, stated that this and other similar policies could cost the bank clients.

Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies.

The second largest bank in the U.S. said that adoption of cryptocurrencies could require the bank to make “substantial expenditures” to update its existing services and remain competitive with upstart firms.

The widespread adoption of new technologies, including internet services, cryptocurrencies, and payment systems, could require substantial expenditures to modify or adapt our existing products and services.

According to the Bank of America, cryptocurrencies could limit the institution’s ability to comply with anti-money laundering regulations.

Eventually, this is one of the first public admissions that financial institutions are beginning to worry that mass cryptocurrency adoption could one day become a reality.