Over 60 South Korean Crypto Exchanges Set To Suspend Services Next Week (reuters.com) 18
More than 60 cryptocurrency exchanges in South Korea must notify customers of a partial or full suspension of trading by Friday midnight, a week before a new regulation comes into effect. An anonymous reader writes: To continue operating, exchanges must register with the Financial Intelligence Unit by Sept. 24, providing a security certificate from the internet security agency. They must also partner with banks to ensure real-name accounts. Exchanges that have not registered must shut down services after Sept. 24, while those that have registered but failed to secure partnerships with banks will be prohibited from trading in won. "Should some or all services need to be closed, (exchanges) should notify customers of the expected closing date and procedures to withdraw money by at least seven days before the closure," the Financial Services Commision said earlier this week. It said this should be completed no later than Sept. 17.
Is regulated Crypto still worthwhile? (Score:1)
If I remember rightly one of the original intents of crypto-currency was for a decentralised currency system. In the years since there is an increasing perception that it is a haven for money laundering and this needs to come in line with national financial systems. If crypto-currency is regulated, it seems to remove one of the arguments for it to exist and now just becomes another financial channel.
Beyond spending huge amounts of energy to mine, does crypto-currency still present itself with any advantages
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No one wants to really regulate cryptocurrencies at this point in time.
Exchanges though, are a different story. Once you want to buy/sell your made-up money for real one, you can be damn sure the government will be there asking questions.
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There was always a wild optimism about two aspects of distributed ledger blockchains: First, that it would make sense for lots of small transactions; second, that governments would not be able to effectively regulate trade using them.
If there are thousands of verifiers, they don't really want to record every time somebody buys a lunch or an energy drink or whatever. They want to save their bandwidth and storage for transactions with higher commissions, because that commission essentially gets averaged over
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- Not all crypto currencies require huge amounts of energy. Only the "Proof of Work" ones, like Bitcoin, generally do. The "Proof of Stake" ones, like Cardano, are much more efficient.
- Crypto is no longer just about being a decentralized, digital currency. Research "Smart Contracts", "DeFi", and "NFTs".
- Most people agree that regulation will be necessary for crypto to become widely adopted.
- large transfers are cheaper and faster than over banking systems
- There are several advantages to being digital and
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It will be extremely difficult to kill a decentralized network such as crypto. There are way's to try and attack it, but then there are way's to avoid the crackdowns. For example, they could try to shutdown all exchanges, all over the world, but then people will just find other ways to trade other real-world assets for crypto.
You would have to kill the Internet to really kill crypto. That's one of the traits that make it attractive.
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You would have to kill the Internet to really kill crypto. That's one of the traits that make it attractive.
Assuming crypto doesn't kill the internet first...
@NanoRaptor [twitter.com]
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There are several advantages to being digital and decentralized: a bank can go bust, freeze your account, have your money confiscated, take a long time with transfers, impose limits on those transfers, suffer sanctions, among other things. Key is: the bank actually controls your account and your money, not you. All of this is not possible with a decentralized crypto currency. You can be the sole owner and controller of your assets.
Exactly none of that will be possible once the regulators figure out what to do about exchanges, banks etc. In order for the regulations to be in anyway congruous with rules around existing monies you will be required to give up all those things. Working with a lender - its going to be a wallet they control because regulations will almost certainly require law enforcement can freeze your account. Same deal with any other investing, your broker will use a mark-sweep system just like they do now an they will
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Large transfers cheaper? Cheaper than the 0 my bank changes me?
A bank *can* go bust (true), but crypto exchanges are hacked on a regular basis and people lose money. Yes - if you had everything in your own wallet you are safe from this - until you lose your private key - and then it's all worthless. If I lose my bank card my bank will send me another.
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There is no way around regulated exchanges. They are basically banks and hence they will get regulated. It is only surprising it took this long.
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Beyond spending huge amounts of energy to mine, does crypto-currency still present itself with any advantages over alternative currencies?
It never has. There was a vision of it having advantages, but there is one critical thing that any currency needs to have in order to be useful: Stability. Even "stablecoins" do not have stability. Without stability, they are useless as a means of payment.
Why is this stuff not stable? My guess is a variation of the "tragedy of the commons", namely greed in more or less criminal forms.
time to dump as the pump is ending! (Score:2)
time to dump as the pump is ending!
Ooh banks trying to stay relevant (Score:2)
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Banks are *heavily* regulated, you know.
Be careful what you wish for.
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Kicking and screaming they will find a way in. Scary to go the way of dinosaurs. Strange that no big banks really just opend their own exchanges
Fascinating. Do you really think they have not looked? They have, and I know this from personal involvement on the security side. The thing is that a bank _knows_ how difficult and expensive it is to run such an exchange legally, i.e. regulated and securely. The exchanges do not and many/most will have broken the banking laws of various countries as a consequence and many have gotten robbed, pretty much as a consequence of incompetence as well.