South Korea’s new cryptocurrency rules and regulations come into effect. Most of the cryptocurrencies have actually fallen significantly in the last 48 hours. One of the main reasons why these cryptocurrencies have fallen is due to the fact that South Korea has enacted regulation with the help of which criminals would not be able to take part in cryptocurrency trading. Moreover, children would also not be able to take part in cryptocurrency trading. Owing to this very reason, the cryptocurrency audience would certainly be reduced as well.
Affecting all cryptocurrencies
This ruling is actually not only affecting Bitcoin but it is also affecting ripple as well as Bitcoin Cash and even Ethereum as well. This is one of the main reasons why in the last 48 hours, most of the cryptocurrencies have fallen. If you’re just looking into the fall into Bitcoin, you would realize that it is fallen by around 5% to 6%. Currently, as well, it is falling further. This is one of the main reasons why investors are worried that these actions by South Korea would actually lead to a further fall in most of the cryptocurrencies as well.
It would be difficult for the cryptocurrencies to gain the same kind of movement
The problem is that any kind of reduction in the market size or the investors size of the cryptocurrencies would lead to a drastic fall as well. This is more sentimental in nature. Moreover, as South Korea decides that identity proof, as well as other such documents, are more necessary for investing or trading in cryptocurrencies, you can be sure that more and more investors would actually be staying away from the cryptocurrency space. As more and more investors are staying away from the cryptocurrencies space, it would be difficult for the cryptocurrencies to gain the same kind of movement as well. When you look at the number of South Korean investors globally, you would realize that a significant portion of them actually resides in South Korea. This is one of the main reasons why regulation which is being enacted in South Korea can have a drastic impact on the entire cryptocurrencies space as well. This is exactly what is happening as well.
Waiting for clarity about regulations
Many of the investors are actually waiting for more clarity on the rules and regulations which have been enacted by South Korea. Once there is more clarity about these rules and regulations, it would be easier for the investors to decide whether they should again invest in the cryptocurrencies space or whether they should wait for the time being.