Korea’s Rising Bitcoin Trading Volumes Could Be Key Factor in Sparking Next Crypto Bull Run
One of the key regions for crypto trading has seen a surge in trading volumes. The influence of Korea leads to the Kimchi effect. This causes a 20 to 30 percent higher price on Korean exchanges compared to elsewhere. There has not been such a major event in 2018.
Is This A Sign Of The Bull Run?
Korea is an important region for crypto trade globally. It is believed that trading in Korea is what caused the Bitcoin to reach its highest point of $20,000. The nation is reportedly trying to create regulation that is friendly to crypto.
The volumes for BTC/KRW have been high compared to any other fiat currency, including the USD. Besides that, exchanges in Korea such as Coinbit and Bithumb have shown strong market leading volumes globally. It has happened numerous times in recent months. The Kimchi has been seen a few times but it has not been as sustained as it was in 2017. However, some experts believe the way volumes have been spiking, Kimchi may be seen quite soon.
An analysis shows that volumes in the Korean Won have been quite silent since the start of 2018. However, this has started to change in recent months. In some cases, these spikes have been so huge that the KRW has accounted for 50% of the whole market.
The trends are similar to the trends that occurred in a similar period in 2017. This was just before the largest market bull in the history of the crypto market. Perhaps this is a sign that it could occur again.
Regulation In Japan
While Korea has been causing major spikes, Japan might soon join in. The nation plans to give crypto self-regulatory status. There will be a much need boost, which will eliminate any central control from crypto. It will also encourage the Japanese to trade in crypto.
The Financial Services Agency (FSA) of Japan permitted the Japan Virtual Currency Exchange to regulate and sanction exchanges for violations. Japan has been reviewing its approach to the industry after it was hit twice by major thefts of crypto.
According to this new model, the FSA will give the industry the right to set rules that safeguard the customers’ assets, give guidelines, and prevent money laundering. This association will also check if exchanges are compliant.
Why It Is Needed
According to an official of the FSA, this was necessitated by the fact that the industry is quite fast moving. Thus, it would be better to set the rules in real time than wait for bureaucrats to do it. This is not something new, similar self-regulating bodies exist in sectors such as brokerages and securities.
The crypto association said it wants to ensure that they can create an industry, which is trusted by customers. In 2017, Japan became the first nation to regulate crypto exchanges. It encourages technological innovation and the protection of consumers. Each exchange has to seek approval from the FSA.