Bitcoin in Korea. Why is the cryptocurrency exchange rate on Korean exchanges higher
AdEx is a standalone Ethereum-based digital service. It allows you to monetize various content. The platform intends to replace the existing concepts of advertising distribution by offering a truly unique model that will enable all those who are interested in promoting their product to communicate directly with the sites where their advertising banners can be placed. At the same time, there is no need for all kinds of intermediaries. Also, using the resource, you can make sure that the target consumer sees and controls the advertising messages displayed to him through the personal account of the platform. For the purchase or sale of marketing space, and in addition, the duration of the action, the internal currency is used.
about the project
It is the latter that are responsible for the execution of most AdEx functions. However, in the future, the creators of the coin plan to switch to second-level solutions. This model allows advertisers and suppliers to work with each other without wasting time waiting for transactions.
Not so long ago, the project team announced a collaboration with another popular electronic platform NEO, which in certain circles is considered the “Chinese Ethereum”. The developers intend to completely transfer their service to the NEO blockchain. This solution will have a very positive effect on the platform, as it will add many new features:
- the ability to carry out decentralized trade;
- support for more varieties of electronic money;
- availability of electronic signatures to ensure trust in the open block chain and guarantee legal protection of assets added through the NEO service;
- the use of additional programming languages, including Javascript, Python, Gow and others;
- the ability to conduct transactions with currency based on two different blockchains.
Currently, developers plan to use their own internal ADX tokens. However, they do not exclude the circulation of other types of digital currency, for example, Iota or NEO.
It is no coincidence that both of these platforms work so closely together. By the way, immediately after the appearance of information on the partnership between AdEx and "Chinese Ethereum", the price of the coins of the first crippled from 34 cents to $ 2. The growth rate exceeded 390%. However, the news also affected the NEO course, increasing its cost from 10 to almost 50 US dollars.
Since the AdEx resource was created for a wide range of applications in the field of marketing, the procedure for its implementation is quite simple. The service can be used in various Internet portals, mobile applications and social networks.
Course Movement Analysis
Now it’s hard to call AdEx a self-sufficient coin, since it is based on the Ethereum network, and without it it simply ceases to function. However, this does not diminish the prospects of the service. His concept is pretty promising. Apparently, this is why he managed to attract many investors.
In the first week of the initial token placement, the platform raised more than $ 10 million. Such success demonstrates community interest in the site. A lot of people believed in the potential of AdEx and did not lose.
Over the past time, the price of one coin of a resource has increased several times, amounting to a significant $ 0.8. However, you should be aware that this is not a familiar digital currency, but a specialized token that enables users to effectively collaborate within the service. This, in turn, is reflected in the miners, since they will have to realize all the coins they have mined.
Fortunately, at this time there are no factors that could adversely affect the cost of AdEx. On the contrary, perhaps the price will make very good growth in the near future, since the developers of the project have almost completed its transfer from the Ethereum blockchain to the NEO blockchain. The service team believes this blockchain is much better. Thanks to her, the site will function much more efficiently and faster. In addition, the load on the equipment of miners will decrease, and therefore the mining process will be even more profitable.
Purse
Of course, AdEx also has a digital wallet, but one should not hope that it will be possible to pay for any goods or services with the project’s currency. Wallets are used only for operations on trading floors and rather play a supporting role. They also list and write off the internal currency. To spend, you first have to exchange it for other coins.
Since experienced investors investing colossal amounts carefully monitor promising new products in the digital asset market, it is very difficult to acquire really worth tokens. AdEx can also be attributed to this. Currently, the official sale of coins has been completed, which means it will not be possible to get them at the old cost. However, there is always the opportunity to buy several coins on the exchange.
Users who received coins during the ICO are now actively selling them on various trading platforms. The latter are specialized resources on which anyone can buy or sell digital currency. A distinctive feature of such services is that only electronic money is used there. Therefore, if it becomes necessary to buy AdEx tokens, you will first need to acquire another cryptocurrency.
However, do not forget - this segment appeared relatively recently and all sorts of scammers are quite common here. In order not to become their victim, you need to use only reliable and proven platforms. All kinds of monitoring services help distinguish a good exchanger from a bad one.
One of the most popular resources that provides this service is the bestchange website. It allows you to choose the most suitable exchanger and verify its honesty. When compiling its ratings, the portal relies on many different factors, including the duration of the work, user reviews, hosting location, and so on.
Bitcoin and other digital currencies have fallen 15% since the start of the week. Any new message about the intentions of world regulators may lead to a new fallBitcoin and other digital currencies have fallen 15% since the start of the week. Any new message about the intentions of world regulators may lead to a new fall
Last night, the South Korean Department of Justice announced a plan to effectively ban cryptocurrency trading on local exchanges. A few hours later, the president made a reservation that this was only one of the proposals - but the statement of the ministry managed to send the cryptocurrency market into a deep fall.
- Within a few hours, the capitalization of the global cryptocurrency market was $ 106 billion. Bitcoin fell to a minimum in 2018 and was trading below $ 13,000, but won back the drop by tonight and cost a little more than $ 14,000 by 19.00 Moscow time.
- Cryptocurrencies are getting cheaper all last week - since January 7, the entire market has fallen by 15%, bitcoin - by almost 20%. The main reason for the fall is fears of tightening nuts by regulators in China and South Korea. The Chinese authorities, in particular, are going to limit the use of electricity for mining. China accounts for about 75% of global mining capacity.
- South Korea is one of the world's leading cryptocurrency trading centers. The country accounts for approximately 20% of all global bitcoin transactions, while prices on South Korean exchanges are usually 30% higher than world average.
- The main claim of the Korean authorities to crypto-exchanges is accusations of tax evasion. Last week, police came to several exchanges, including the second-largest Bithumb.
- Regulation remains a major factor of uncertainty for cryptocurrencies. Any reports of new government initiatives cause sharp market fluctuations. In October 2017, China at an ICO, and crypto-exchanges banned the exchange for real money, dropping the $ 2000 Bitcoin exchange rate.
Over the past two days, several countries have examined the taxation of cryptocurrencies. Some countries, including the United States, have already introduced rules, others are only working on an idea. Russia is a country without a clear policy. Will there be a tax on bitcoin in Russia?
The State Duma of Russia proposed to oblige deputies to declare cryptocurrency
Over the past few months: from taxation to a total ban. This time, the initiative was put forward by the deputy of the State Duma from the party "Fair Russia" Anatoly Aksakov. Today, it is not necessary to declare bitcoin and virtual currencies in Russia, because they are not spelled out in the legislation. Currently, neither deputies nor other officials are required to pay taxes on Bitcoin or even declare it. This was recently announced by the Ministry of Labor and Social Protection of Russia.
The initiator of the bill noted that if the law is passed, Bitcoin will have to be declared as other property. This is probably done in order to complicate the withdrawal of funds received through corruption. The procedure for taxing cryptocurrencies is not specified. The bill itself is under development. He was put forward for consideration in February.
Miners should not be entitled to benefits
Today, Aksakov, the same deputy of "Fair Russia", spoke out against benefits for miners.
Miners must work under tax law, like any normal business
Recall that privileges for miners are normal practice in the world. Some countries, including India, are considering the possibility.
Today there is no tax on bitcoin in Russia
In November 2017, the Ministry of Finance of Russia asked to file a declaration yourself and pay tax at the personal income tax rate. But since virtual currencies are not spelled out in the legislation, the punishment for evasion is not spelled out, and not a single similar case has been opened. Miners are held accountable only for laundering funds on an especially large scale. Roughly speaking, in Russia, the payment of personal income tax for bitcoin is voluntary.
Korea introduces Bitcoin banking transaction tax
Popular South Korean news agency Yonhap reported that the government will levy a tax on banking operations, taking into account cryptocurrencies, including bitcoin. This is one of the levers of pressure on banks - in January 2018, South Korea imposed restrictions on operations with bitcoin. An additional motive was the fact that in 2017 banks earned more than $ 2 million in net profit on commissions from bitcoin transactions.
According to Yonhap, there will be a corporate tax of 22% and a local tax of 2.2% for each transaction.
But the public is unhappy with government policies. Residents of South Korea collected more than 200 thousand petition signatures demanding to stop pressure on bitcoin, cancel the tax and stop. This number of signatures is enough for the government to take the petition into account. Now it is under consideration, but it is unlikely that regulators will abandon the Bitcoin tax and so dramatically change the regulatory vector.
The glitter of bitcoin brightly illuminated South Korea, as the price for 1 BTC a couple of days ago in the region exceeded $ 3500-3800 on the three leading exchanges of the country. Many traders find significant opportunities for buying and reselling this digital currency for the reason that spreads in South Korea exceed their global average by more than $ 1000.
South Korea's btc trade volume grows
Bitcoin is very popular in South Korea at the moment. According to statistics, the three leading exchanges of the country Bithumb, Korbit and Coinone in recent months are literally breaking apart from the volume of bitcoin trading. Platforms daily process about $ 200 million worth of trading results in the KRW / BTC pair. Recently, the indicators of most of these transactions significantly exceed the world average. Along with this, the volumes and spreads of Localbitcoins are also outrageous.
South Korean authorities favor fintech!
Startups working on bitcoin transactions and on the development of financial technologies have also flourished in the region. The South Korean government is very friendly with digital currencies, and the country is steadily moving towards technological leadership. More recently, the government has lowered capital requirements for btc money transfer companies. Such changes will come into force on June 18, reducing the authorized capital of companies to 1 billion KRW instead of the previous 2 billion.
In addition, researchers from the Central Bank of South Korea (BOK) recently published a report detailing “how virtual currencies and bitcoin can coexist with fiat currencies.”
“The recent advent of digital currencies is opening up a new dual currency regime in which non-core digital currencies and state fiat money can coexist together,” explained researchers at Seoul Hongika University and Bank of Korea (BOK) representatives.
A growing Bitcoin community and a huge transaction market
In addition to the friendly relations between the BOK and the government, the South Korean bitcoin community is also flourishing. For example, the Seoul Bitcoin Meetup group has more than 1,200 members and has already held more than 10 btc enthusiast meetings. In March of this year, the group discussed the differences between soft fork and hard fork. Currently, in the cities of South Korea, there are 3 Bitcoin ATMs in which you can buy / sell this digital currency.
The annual billions in turnover in the money transfer market make South Korea fertile ground for the use of cryptocurrencies. Bitcoin has undoubtedly strengthened due to money transfer startups such as Korbit and others. Financial operators such as Shinhan Bank are also successfully using the advantages of this digital currency for the huge South Korean money transfer market.
Great role model
Feverish demand for cryptocurrency solutions and financial technologies put South Korea among the five leading countries in the field of bitcoin trading. It is safe to say that a country with a population of 50 million, a multibillion-dollar transaction industry, as well as a government that strengthens fintech, should be a worthy role model.
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This morning, several major media outlets announced that the South Korean authorities intend to ban the activities of cryptocurrency exchanges. Of course, such negative news could not but affect the course of bitcoin, pushing it to another fall.
This day's events
What happened this morning can be described with the saying "fear has big eyes." One small South Korean publication, citing a source close to the decision center, stated that south Korean authorities intend to ban cryptocurrency exchanges.
This news was picked up at an amazing speed by the international media. It seems that even the "Bulletin of Bobruisk" today made an official statement that South Korea had fallen off bitcoin. Amen.
Such a stir around the situation in South Korea is not accidental. The situation in this country has long been monitored by the entire online community.
The reason is that South Korea is the world leader in the penetration of cryptocurrencies among the population - Approximately 20% of the global bitcoin trade falls on South Korean exchanges, according to CoinDesk, and approximately 2 million Koreans have cryptocurrencies.
Timeline
- At the end of November this year, the Financial Services Commission of South Korea (FSC) identified the activities of crypto exchanges as "unauthorized fundraising." As noted by the local publication The Hankyoreh, given the global scale of the new sector, the agency intends to develop a regulatory framework for the effective regulation of cryptocurrency exchanges, and not for their complete ban.
« Cryptocurrency exchanges will be required to comply with consumer protection standards.A separate deposit account must be provided to the user for each asset. In addition, to increase transparency, exchanges are required to implement an effective KYC procedure", - said the representatives of the FSC.
- However, already in early December, the first reports appeared about the possible closure of South Korean crypto exchanges. Then the government began to consider the possibility of amending legislation, following the example of China, where the exchange of cryptocurrencies through centralized sites was considered illegal.
- Less than a week ago, it became known about the large-scale verification by the South Korean authorities of the largest cryptocurrency exchanges, including Bithumb, Coinone, Korbit and Upbit.
All these events led to the fact that today's duck banning the work of South Korean crypto exchanges produced the effect of an exploding bomb.
The impact of news on the Bitcoin exchange rate
It is believed that this year it was South Korea that became the starting point in the global surge in the growth of interest in bitcoin and other cryptocurrencies, which also showed a record price increase in recent months.
After the publication of today's news, the Bitcoin rate dipped 9%, below $ 14,000.
However, in South Korea itself, the price of bitcoin remains approximately 30% higher compared to the world's largest cryptocurrency exchanges, which indicates an incredible demand from local residents.
In any case, the activities of the authorities in attempts to regulate cryptocurrency exchanges have not yet been stopped. According to local media, South Korea will require a ban on anonymous cryptocurrency transactions and will ban banks from opening virtual accounts for cryptocurrency exchanges, according to a statement made by the Office for the Coordination of Public Policy of the country. Lawmakers will discuss possible options, including the closure of exchanges proposed by the Ministry of Justice, and take all necessary measures while monitoring speculative activity.
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