South Koreans Risk Losing $2.5 Billion In Crypto By Next Week

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Cryptocurrencies are mostly traded in two global currencies, the United Stated dollar and the European euro. Given the size of both markets and the richness of their middle classes as well as the willingness of those populations to invest in a risky asset, not too surprising. The third place however, is a surprise for those of us new to the crypto market. Not the Chinese Yuan or the Indian Rupee is responsible for the third currency which is mostly exchanged for cryptocurrencies, but rather the South Korean won.

Bybit crypto exchange suspends services in South Korea pic.twitter.com/dxZGVs3ATY

— RetroKrypto (@RetroKrypto) September 18, 2021

Given that about a third of South Korean millennials were invest in Bitcoin already during the 2017 bullrun (when the Japanese Yen still took the place of the Euro), perhaps logic for those of us who’ve been following it for a while. But the next week promises to become quite tense on that crypto market.

Two and a half billion dollars injeopardy

By now, some 60% of South Korea’s newest crypto investors are people in their twenties and thirties. And they are in for a rough ride in the next six days.

South Korean regulators are set to shut down dozens of cryptocurrency exchanges in coming days https://t.co/eHZRpNwauC

— Bloomberg (@business) September 16, 2021

By Friday, September 24th, all crypto platforms that buy, sell and allow trading of digital currencies on the South Korean landmass are obliged to obtain official licenses from financial and Internet regulators in Seoul.

The US and European regulators look on to see how this will play out. Time is ticking, because until now only some 28 exchanges of the 63 that are operating in the country are officially approved to continue trading by Financial Services Commission (FSC).

South Korean media expects the remaining 35 exchanges not to be able to meet the deadline in time. With some $2.5 billion sitting in those accounts, that could be quite the shock for the crypto world to wake up on Friday. ByBit is unfortunately one of those exchanges that will suspend their services in South Korea.

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