It seems that regulators in South Korea are reconsidering their stances on bitcoin. The country has been relatively quiet and lax on the use and exchange of cryptocurrencies. As a matter of fact, the crypto economy that is present in South Korea is one of the most prominent and strongest in the world. The frenzy and rapid growth of the currency is surprising, but so is the people’s acceptance of it.They’ve seen the price fluctuate rapidly, and they’ve seen the reaction of the people. They’ve watched with significant interest as the crypto ecosystem has developed, but they are also thinking if it’s time to pump the breaks.
The government seems to be paying more attention to the market now and want to make sure that there aren’t additional problems that they have to deal with. So, they have elected to put a hold on further layers of speculation on top of an already volatile currency.
It seems that they are moving rather rapidly in making the decisions, as it has been reported by local South Korean news organizations the government has banned sales of futures contracts and other derivatives that would be connected to the pioneer virtual currency bitcoin.
A news report that came from the Korea Herald stated that there were directives that came from the Financial Services Commission of the South Korean nation that led to large banks and securities trading firms to put an end to their different seminars and other activities that were related to the marketing of bitcoin futures. The financial was going pedal to the medal, full speed ahead, in implementing bitcoin futures yet were thwarted by regulation. Firms like eBest and Shinhan Financial Investment have to halt their operations for the time being. These firms were in the process of putting all the logistics together to market their contracts and securities and were planning on holding them within the coming weeks.
Furthermore, it has been reported that the investments in these sort of derivatives from foreign exchanges would also not be allowed.
This implies that the citizens of South Korea are not to engage in further abstract speculation as tied to the bitcoin cryptocurrency.
Current State of Affairs of Bitcoin Derivatives
The Financial Supervisory Services of the South Korean nation stated earlier that they would not be conducting or pushing any regulation in regards to the trades of bitcoin itself. They considered bitcoin as more of risky financial but not necessarily a currency or payment service protocol.
Meanwhile, other countries like the United States have allowed for there to be derivatives trading and have given approvals to both the Chicago Mercantile Exchange and the Chicago Board Options Exchange. Both exchanges will be launching their futures contracts between December and January. CBOE was first to the races by deploying their contracts by last Sunday, the tenth of December, while CME will releasing theirs a bit later.