Flashing back to the events that occurred in the crypto market late last year and early this year, when your favorite digital currencies were doing very well and amassing gains on a daily basis. Bitcoin was trading close to the $20k level in December just before the offering of BTC futures by both the CME group and CBOE.
In January, the total market cap of the entire digital currency market got to as high as $826 billion – which is its all-time high. Still in January, Ethereum (ETH) tested the $1,400 mark, XRP peaked at $3.65, and Bitcoin Cash (BCH) touched the $4k mark after being listed on Coinbase.
On the 22nd of January, the government of South Korea hinted at prohibiting digital currency trading using anonymous accounts. There was also fear, uncertainty, and doubt that the nation would ban all digital currency related activities just like their neighbors – China. The ban on the anonymous trading was effected on January 30th, the digital currency market has not remained the same since then.
The Effect of South Korea’s Decision on the Crypto Market
It cannot be said that South Korea is the direct reason why the digital currency market slumped. However, it can be said that that crypto traders in the country were the bulk of the digital currency market back then.
South Korea Plans to Finalize Blockchain and Crypto Legislation
With the nation now planning to finalize the legislation of blockchain and digital currency pretty soon, the overall volume of the digital currency market might return to its previous levels near $800 billion in market cap.
Everyone is waiting for the comments of the SEC in mid-August on the ETF application filed by CBOE. The possibility of an approval is very small considering the fact that the SEC just rejected all ETF applications so far, including that of the Winklevoss brothers.
But with more and more nations adopting blockchain technology and digital currency, the bull run of Bitcoin (BTC) won’t solely rely on the approval of ETF by the SEC. One key factor that can cause a rapid growth in the value of Bitcoin is the passing of blockchain and digital currency regulation in South Korea. This will increase the trading volumes as well as the value of digital currencies in the market.