South Korean regulation update boosts Bitcoin Cash value
Earlier this week, South Korea’s financial regulation body, the Financial Supervisory Service (FSS), stated that they had no designs on including cryptocurrency in their regulations. Bitcoin cash has since seen an increase in value driven largely by Korean trading desk.
The Governor of FSS, Choe Heung-sik, told reporters: “Though we are monitoring the practice of cryptocurrency trading, we don’t have plans right now to directly supervise exchanges. Supervision will come only after the legal recognition of digital tokens as a legitimate currency.” He explains: “It is the same with the fact that we don’t regulate or supervise casinos. Though there could be concerns on excessive gambling, that does not provide grounds for the FSS to control casino practices.”
Coindesk has since reported that Bitcoin cash has reached a high of $1,623. They report that the growth is driven by trading desks in Korea. In particular, one of South Korea’s largest exchanges Bithumb has increased trading by 42% in the 24hours following the statement.
Bithumb’s rise in trading will be welcome news after they suffered a 90 minute server outage earlier in the month. The outage resulted in the loss of hundreds of millions of won, according to the Korea Times. Since the debacle, 1,500 frustrated investors have become part of a joint suite against the company. To their credit, Bithumb quickly began conversations with law firms to find a method of compensating clients who lost money. You’d hope this will be the last problem they face, having also suffered a breach in June when data was stolen from the computer of an employee.
The current and continuing lack of regulation makes South Korea an attractive market for Bitcoin cash. Global responses to the market is likely to continue to impact the value of Bitcoin cash, Bitcoin, ether and other cryptocurrencies.