Bitcoin in Korea. Why is the rate of cryptocurrencies on Korean exchanges higher
AdEx is an offline digital service based on Ethereum. It allows you to monetize various content. The platform intends to replace current advertising distribution concepts 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. This eliminates the need for any kind of intermediaries. Also, using the resource, you can make sure that the target consumer sees and controls the advertising messages shown to him through Personal Area platforms. Local currency is used to purchase or sell marketing space, and in addition, the duration of the action.
about the project
It is the latter that are responsible for the execution of most of the functions of AdEx. However, in the future, the creators of the coin plan to switch to second-level solutions. This model allows advertisers and vendors to work with each other without wasting time waiting for transactions.
Not so long ago, the project team announced cooperation 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 decision will have a very positive impact on the platform, as it will add many new features:
- the ability to carry out decentralized trading;
- support for more varieties of electronic money;
- Availability electronic signatures to ensure trust in the open blockchain and guarantee the legal protection of assets added through the NEO service;
- the use of additional programming languages, including Javascript, Python, Go and others;
- the ability to conduct transactions with a currency based on two different blockchains.
Currently, the developers are planning 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 these platforms cooperate so closely. By the way, immediately after the appearance of information about the partnership between AdEx and the "Chinese Ethereum", the price of the coins of the first increased from 34 cents to 2 dollars. The growth rate exceeded 390%. However, the news was also reflected in the price of NEO, increasing its price 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 is difficult to call AdEx a self-sufficient coin, since it is based on the Ethereum network, and without it, it will simply cease to function. However, this does not diminish the prospects of the service. Its concept is quite promising. Apparently, that is why he managed to attract a lot of investors.
In the first week of the token offering, the platform raised over $10 million. Such success demonstrates the interest of the community in the platform. A lot of people believed in the potential of AdEx and did not lose.
Over the past time, the price of one coin of the resource has increased several times, amounting to a significant 0.8 dollars. However, you should be aware that this is not a familiar digital currency, but a specialized token that allows users to effectively cooperate within the service. This, in turn, affects the miners, since they will have to sell all the mined coins.
Fortunately, on given time there are no factors that can negatively affect the cost of AdEx. On the contrary, it is possible that the price will make a very good growth in the near future, as the developers of the project have almost completed its transfer from the Ethereum blockchain to the NEO blockchain. The service team believes that this blockchain is a much better fit. Thanks to it, 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 currency. Wallets are used only for operations on trading floors and perform rather a supporting role. The local currency is also transferred and debited to them. To spend, you first have to exchange it for other coins.
Since experienced investors who invest huge sums are closely following the promising innovations in the digital asset market, it is very difficult to acquire really worthwhile tokens. AdEx can also be attributed to this. Currently, the official sale of coins has been completed, which means that it will not be possible to get them at the old cost. However, there is always the opportunity to buy a few coins on the exchange.
Users who received coins during the ICO are now actively selling them on various trading platforms. The last are specialized resources where anyone can buy or sell digital currency. Distinctive feature such services is that only electronic money is used there. Therefore, if it becomes necessary to purchase AdEx tokens, you will first need to acquire another cryptocurrency.
However, do not forget that this segment appeared relatively recently and all kinds of scammers are quite common here. In order not to become their victim, you need to use only reliable and proven platforms. Various monitoring services help to distinguish a good exchanger from a bad one.
One of the most popular resources that provides such a service is the bestchange website. It allows you to choose the most suitable exchanger and make sure that it is honest. When compiling its ratings, the portal relies on many different factors, including the duration of work, user reviews, hosting location, and so on.
Bitcoin and other digital currencies have fallen by 15% since the beginning of the week. Any new message about the intentions of the world regulators can lead to a new fallBitcoin and other digital currencies have fallen by 15% since the beginning of the week. Any new message about the intentions of global regulators could lead to a new fall
Last night, the South Korean Ministry 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 just one of the proposals - but the ministry's statement managed to send the cryptocurrency market into a deep fall.
- In a few hours, the capitalization of the global cryptocurrency market was $106 billion. Bitcoin fell in price to a minimum for 2018 and was trading below $13,000, but by tonight it has won back the fall and by 19.00 Moscow time was worth a little more than $14,000.
- Cryptocurrencies have been getting cheaper over the past 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 the screws 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 the world's mining capacity.
- South Korea- one of the world's main centers of cryptocurrency trading. The country accounts for approximately 20% of all global bitcoin transactions, while prices on South Korean exchanges are usually 30% higher than the world average.
- The main claim of the Korean authorities to crypto-exchanges is accusations of tax evasion. Last week, several exchanges, including the second largest Bithumb, were raided by the police.
- Regulation remains a major uncertainty factor for cryptocurrencies. Any reports of new initiatives by the authorities cause sharp fluctuations market. In October 2017, China was on the ICO, and crypto exchanges were banned from exchanging for real money, dropping the bitcoin rate by $2,000.
Over the past two days, taxation of cryptocurrencies has been considered in several countries at once. Some countries, including the US, have already introduced the rules, others are just working on the idea. Russia belongs to the countries 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 total ban. This time the initiative was put forward by Anatoly Aksakov, State Duma deputy from the Just Russia party. 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 was done, probably, in order to complicate the withdrawal of funds obtained by corruption. The procedure for taxing cryptocurrencies is not specified. The bill itself is under development. It will be put forward for consideration in February.
Miners should not be entitled to benefits
Today Aksakov, the same A Just Russia deputy, spoke out against benefits for miners.
Miners must operate within tax law like any normal business
Recall that benefits for miners are a 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 on their own and pay tax according to personal income tax rate. But since virtual currencies are not written into the legislation, the punishment for evasion is not prescribed, and not a single such case has been opened. Miners are held liable only for money laundering on a particularly large scale. Roughly speaking, in Russia payment of personal income tax Bitcoin is voluntary.
Korea introduces a tax on Bitcoin banking transactions
Popular South Korean news outlet Yonhap reported that the government would levy a tax on Bank operations including cryptocurrencies, including bitcoin. This is one of the levers of pressure on banks - in January 2018, South Korea introduced restrictions on operations with bitcoin. An additional motive was the fact that banks in 2017 earned more than $ 2 million in net profit on commissions from bitcoin transactions.
According to Yonhap, will act corporate tax in the amount of 22% and local in the amount of 2.2% for each transaction.
But the public is unhappy with the government's policies. Residents of South Korea have collected more than 200 thousand signatures of a petition 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 change the vector of regulation so drastically.
The brilliance 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 country's top three exchanges. Many traders are finding significant opportunities to buy and resell this digital currency because spreads in South Korea are more than $1,000 above the global average.
BTC trading volume in South Korea is growing
At the moment, bitcoin is very popular in South Korea. According to statistics, the country's top three exchanges Bithumb, Korbit and Coinone in recent months are literally bursting with bitcoin trading volumes. The platforms process around $200M of value per day in KRW/BTC trading. IN Lately most of these transactions are well above the global average. Along with this, the volumes and spreads of Localbitcoins are also outrageous.
The South Korean authorities are supportive of 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 towards digital currencies, and the country is steadily moving towards technological leadership. More recently, the government has lowered the capital requirements for btc money transfer companies. These changes will come into effect on June 18, reducing authorized capitals companies to 1 billion KRW instead of the previous 2 billion
In addition, researchers from central bank South Korea (BOK) recently published a report detailing “how virtual currencies and bitcoin can coexist with fiat currencies.”
“The recent emergence of digital currencies opens up a new dual currency regime in which digital currencies with no underlying value and government fiat money can coexist,” researchers at Seoul Hongik University and representatives from the Bank of Korea (BOK) explained.
Growing bitcoin community and huge transaction market
In addition to the friendly relationship between the BOK and the government, the Bitcoin community in South Korea is also thriving. For example, the Seoul Bitcoin Meetup group has over 1200 members and has already hosted over 10 btc enthusiast meetings. In March of this year, the group discussed the differences between a soft fork and a hard fork. At the moment, there are 3 bitcoin ATMs in the cities of South Korea, where you can buy / sell this digital currency.
The billions in annual turnover in the money transfer market make South Korea fertile ground for the use of cryptocurrencies. Bitcoin has undoubtedly strengthened due to such startups on money transfers like Korbit and others. Financial operators like Shinhan Bank are also taking advantage of this digital currency for the huge South Korean remittance market.
Great role model
Feverish demand for crypto-currency solutions and financial technologies has propelled South Korea into the top five countries in the field of bitcoin trading. It's safe to say that a country with a population of 50 million, a multi-billion dollar transaction industry, and a government that strengthens fintech should be a worthy example to follow.
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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 bitcoin rate, pushing it to another fall.
Events of this day
What happened this morning can be characterized by the saying “fear has big eyes”. One small South Korean publication, citing a source close to the decision-making center, stated that South Korean authorities intend to ban the activity of cryptocurrency exchanges.
The news was picked up by the international media with surprising speed. It seems that even the Bobruisk Bulletin made an official statement today that South Korea has collapsed bitcoin. Amen.
Such excitement around the situation in South Korea is not accidental. The entire Internet community has been following the situation in this country for a long time.
The reason is that South Korea is world leader in the penetration of cryptocurrencies among the population- Approximately 20% of the world's bitcoin trade is on South Korean exchanges, according to CoinDesk, and approximately 2 million Koreans own cryptocurrencies.
Chronology of events
- At the end of November of this year, the Commission on financial services South Korea (FSC) has defined the activity of crypto exchanges as "unauthorized fundraising". As noted by the local edition of The Hankyoreh, given the global scale of the new sector, the agency intends to develop a regulatory framework for the effective regulation of crypto exchanges, and not for their complete ban.
« Cryptocurrency exchanges will be required to comply with consumer protection standards.For each asset, the user must be provided with a separate deposit account. In addition, in order to increase transparency, exchanges are required to implement an effective KYC procedure.", - said representatives of 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 the legislation, following the example of China, where the exchange of cryptocurrencies through centralized platforms was declared illegal.
- Less than a week ago, it became known about a large-scale inspection 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 canard about the ban on the work of South Korean crypto exchanges produced the effect of an exploding bomb.
The impact of news on the bitcoin price
It is believed that this year it was South Korea that became the starting point in a global surge in the growth of interest in bitcoin and other cryptocurrencies, which also showed record price increases in recent months.
After the publication of today's news, the bitcoin rate sank 9% below $14,000.
However, in South Korea itself, the price of bitcoin remains about 30% higher compared to the world's largest cryptocurrency exchanges, which indicates incredible demand from local residents.
In any case, the activities of the authorities in attempts to regulate cryptocurrency exchanges have not yet been stopped. South Korea will demand a ban on anonymous crypto transactions and impose a ban on banks opening virtual accounts for crypto exchanges, according to a statement made by the Coordination Office, according to local media reports. public policy country. Legislators will discuss possible options, including the closure of exchanges proposed by the Department of Justice, and will take all necessary measures, while monitoring speculative activity.
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