South Korea Ties Up Crypto Transactions as its Citizens Pile Into Digital Money

South Korea Ties Up Crypto Transactions as its Citizens Pile Into Digital Money

After the South Korean government released emergency measures for the regulation of cryptocurrency market in the market around two weeks ago, on December 28, it notified about the prohibition of anonymous virtual accounts use, when conducting crypto transactions. This country’s government decision was made in order to tame the hype over the currency.

At the same time, the recent survey has demonstrated that over 31% of South Korean workers have piled into any cryptocurrency to gain fast revenues.

No More Anonymous Accounts

The announcement was made by the minister of the Office for Government Policy Coordination, Hong Nam-ki. He said that the country’s authorities could not allow the deranged situation of profiteering to continue, as the agency Yonhap informed.

It means that now that for deposits or withdrawals only real accounts can be used. In particular, among them are genuine bank accounts and matching accounts at cryptocurrency point swap services. Simultaneously, it won’t be possible anymore to open new virtual accounts on crypto exchanges.

South Korean Crypto Addiction

According to the survey conducted by online job portal Saramin, over three out of every 10 South Korean workers have piled into crypto coins in hope to get quick returns. Mainly, that’s 31.3% out of 941 people who currently work which participated in the questionnaire.

It was also found out that on average the investment per capita constitutes $5,300 or 5.66 millions of South Korean won.

At the same time, around 44% of respondents have invested in cryptocurrency less than 1 million won. On the other hand, about 8% piled into digital money up to 6 million won. Interestingly, approximately 54% of respondents claimed that they made such investments for getting more money in the fastest way possible, while about 48% believed it was easy to invest small amounts of money in digital coins.

It seems that South Korean workers are genuinely winning thanks to crypto investment. 80% of those who took part in the survey assured the investment help them to make money, whereas only 6% admitted their losing. And most importantly, over 100% revenues were reported by 19% of respondents. More than 10% gains were received by about 21% of South Korean employees.

In Danger of a Bubble

It is assessed that approximately 2 million of South Koreans own the most prominent crypto coins in the world – bitcoin and Ethereum – and it is in the country with the population of about 51 million people. In addition, the state hosts one of the largest bitcoin exchanges all over the globe. Therefore, the role of cryptocurrency in this country cannot be underestimated.

So it is no wonder that the government is trying to regulate the crypto market as much as possible, especially in view of disputes regarding bitcoin’s “bubble”. Also, on December 28 Choe Heung-sik, governor of the Financial Supervisory Service, expressed his concern that it may burst, though with time.

"I bet the bubble in bitcoin will burst later. Companies existed during South Korea's IT bubble in the early 2000s, but that is not the case for bitcoin," said Choe Heung-sik.