In today's digital currency boom, South Korea has taken a big step: officially legalizing cryptocurrency trading, and this decision has sparked heated discussions in the market. With prices stabilizing above $9,000, the cryptocurrency market has ushered in a new starting point. This article will delve into the impact of the legalization of cryptocurrency trading in South Korea and the meaning behind the $9,000 price.

The transformation of the cryptocurrency market in South Korea is not just a regulatory adjustment, but also a recognition and catering to the digital financial era. This move will bring new opportunities to South Korea's fintech industry and inject a shot of adrenaline into the global cryptocurrency market. The price of $9,000 marks the market's confidence in Bitcoin, and also encourages more investors and institutions to participate.

 Legalization of cryptocurrency in South Korea: Opening a new era of digital finance

The South Korean government officially announced that it would legalize cryptocurrency trading, and this news has attracted widespread attention worldwide. As an important digital economy, South Korea's move is seen as an important exploration of future financial development. By legalizing cryptocurrency trading, South Korea will justify the status of digital currency in the financial system and provide a broader space for innovation and development in the field of digital finance.

This decision also means that South Korea will increase supervision, regulate market order, and protect the rights and interests of investors. At the same time, legalization will attract more institutions and funds to enter the market, laying the foundation for the healthy development of the cryptocurrency market. Behind the legalization of cryptocurrency in South Korea is the government's recognition of the potential of digital currency, as well as support and encouragement for financial technology innovation.

 $9,000: New heights and challenges for Bitcoin prices

The price of Bitcoin has reached $9,000, which means that the market demand for digital currency continues to grow and investor confidence continues to recover. This price is not just a number, but also the market's recognition and expectation of Bitcoin's future potential. The breakthrough of $9,000 has made Bitcoin the focus of investors' attention again, and has also inspired more people to explore and invest in digital currency.

The rise in Bitcoin prices has not only brought investment opportunities, but also challenges and risks. Investors need to remain rational and treat the fluctuations in the digital currency market with caution, avoiding blind following and speculative behavior. The price of $9,000 marks the maturity and stability of the Bitcoin market, and investors also need to remain vigilant and do a good job of risk control and asset allocation.

 Future prospects and thinking of the cryptocurrency market

With the legalization of cryptocurrency transactions in South Korea and the continued rise in Bitcoin prices, the cryptocurrency market has ushered in new development opportunities and challenges. In the future, with the continuous improvement of regulatory policies and the gradual improvement of market mechanisms, cryptocurrencies will gradually move towards standardization and legalization, laying a solid foundation for innovation and development in the field of digital finance.

Investors need to remain rational and calm when participating in the cryptocurrency market, and do a good job of risk management and asset allocation. At the same time, regulators and industry associations also need to strengthen cooperation to jointly promote the standardized development of the cryptocurrency market and maintain market order and investor rights. The future of the cryptocurrency market is full of opportunities, and it also requires the joint efforts of all parties to jointly promote the advent of the digital financial era.

In this era of booming digital currencies, the legalization of cryptocurrency in South Korea and the rise in Bitcoin prices have brought new vitality and opportunities to the market. Investors and institutions need to remain vigilant, participate in the market rationally, seize investment opportunities, and avoid risks and challenges. The future of the cryptocurrency market is full of infinite possibilities. Let us look forward to the advent of the digital financial era together!

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

The full session of the National Assembly of South Korea passed the amendment to the Act on Reporting and Utilization of Specific Financial Transaction Information (Special Financial Act) this afternoon. The passage of the amendment marks the official inclusion of cryptocurrency trading into the legal system of the South Korean government. As a result of this event, the domestic blockchain industry landscape in South Korea is expected to be restructured.

Image source: Pixabay

One of the main focuses of the amendment is that compliance with reporting requirements will be required. Although large exchanges are already largely compliant with this new rule, small and medium-sized exchanges may have difficulty in obtaining full compliance.

South Korean President Moon Jae-in must sign
before the amendment can become law to begin the enactment process, which will take effect one year from the date of signing, followed by a six-month grace period. This means that all entities affected by the law will need to be fully compliant by September 2021. The passage of the amendment came after a long 2-year deliberation and repeated trials of the recommended guidelines. So far, in South Korea, exchanges and companies dealing with cryptocurrencies have been mostly autonomous in terms of their cryptocurrencies, but have had trouble with how to convert cryptocurrencies into fiat currencies.

As it stands, South Korean law requires exchanges, trust institutions, wallet companies, and ICO projects to establish real-name verification partnerships with approved Korean banks. Real-name accounts prevent money laundering by assigning verified people to a bank account that they can use to deposit and withdraw fiat currency with exchanges. In addition, the relevant businesses must obtain South Korea's Information Security Management System (ISMS) certification.

According to guidelines set by South Korea's Financial Services Commission (FSC) in early 2018, some exchanges have already installed real-name verification systems on their platforms. The ISMS certification system is awarded by the Korea Internet and Security Agency (KISA), which proves that companies can protect the keys themselves and the information assets of their users. The cost of this certification can be high, but all exchanges must comply with it within 6 months of the enactment of the new bill that has just been passed, otherwise they risk being shut down.

The measures stipulated by the law will ensure that exchanges follow stricter anti-money laundering (AML) and terrorist financing (CFT) regulations.

Until now, anyone can start a cryptocurrency exchange in South Korea. As of September 2019, there are more than 70 exchanges in the country. The saturation of the market has caused a lot of problems for consumers in the industry. From exit scams and fake trading volumes to insider trading and blatant manipulation of the value of certain tokens, many have suffered from fraud.

Local cryptocurrency investors in South Korea have mixed opinions on the introduction of the new law into the cryptocurrency system. Some hailed South Korea for entering a “new cryptocurrency era.” Others further noted that “
[Cryptocurrency is] no longer considered gambling across the country in South Korea.]”

On the other hand, cynical investors pointed out the futility of such measures. While the security of investor assets is objectively improved through these measures, some pointed out that despite the increased security, investors will still lose money because they will have to pay taxes on their trades. Furthermore, another investor on crypto platform Coinpan implored the community to understand how the stock market is faring with all the regulations today – “
[With all the new regulations for the crypto industry, comes a huge cooling of crypto values.]”

There is a fear that investors will suffer further losses as their preferred exchanges shut down, charge higher fees, or require more documentation to continue trading on the platform. By the end of the 6-month grace period, Korean crypto traders may actually only have 4 to 6 exchanges to choose from, as only Upbit, Bithumb, Coinone, and Korbit have real-name banking systems, while GoPax and Hanbitco are utilizing ISMS.

The “Wild West” regulatory landscape of the Korean crypto trading industry has caused investors a great deal of pain over the past few years. South Korea is rife with accusations and some guilty verdicts of fraud.
Upbit has been embroiled in fraud allegations for years, as have Bithumb, BOSCoin, Komid, and Newbit, among others.
In an effort to correct past mistakes, Hanbitco CEO Sunga Kim commented: "A foundation has been established to wash away the stigma of cryptocurrency exchange fraud and build a transparent and reliable industry.
With the influx of new funds, it will lead the development of the industry."

Whether it is due to the passage of this bill involving cryptocurrency businesses in South Korea, the cryptocurrency market rebounded today, with Bitcoin re-entering the $9,000 mark. As of press time, Bitcoin was trading at $9,087.85, up more than 4%, a 1-week high.