South Korea has decided to jump on the cryptocurrency regulation bandwagon and will no longer allow anonymous cryptocurrency accounts. Also, they will have regulators continually monitoring the exchanges from this point on. Further, new legislation may be put into place that would shut down all exchanges of cryptocurrency in South Korea. South Korea is a big player in the crypto market and sweeping changes like this will probably be felt across the global market.
While interest in cryptocurrencies like bitcoin have surged this year, there’s a hefty amount of volatility in the crypto market, which is a risk that the South Korean government is trying to cull with regulation. This month, bitcoin’s price hit an all-time high that approached the $20,000 mark after starting the year around $1,000. And along with large price fluctuations, some cryptocurrency exchanges have also been hit with major hacks — South Korean exchange Youbit filed for bankruptcy after losing $35 million to a hack earlier this month and $72 million in a hack that took place in April.