Ethereum Soars To Record High After South Korea Regulator Confirms "No Plan" To Regulate Cryptos

In September, South Korea surpassed China in total crypto trading volumes, and as the world’s second largest Ethereum exchange market, South Korea is evolving into an Ethereum powerhouse with a rapidly growing number of active developments, domestic projects and communities.

image courtesy of CoinTelegraph

As CoinTelegraph reported previously, the majority of traders in the South Korean Ethereum market are speculative investors and tend to be largely influenced by any movement in the industry that could lead to a decline in Ethereum price. However, a fairly large portion of investors are avid supporters of Ethereum as a technology and an infrastructure for decentralized applications.

At the moment, ICOs seem like the largest market for Ethereum. In the upcoming years, it is likely that the performance of decentralized applications will evolve as a major factor for the market cap of Ethereum. In an interview with JoongAng, a leading finance news publication in South Korea, Buterin emphasized that it could take two to five years for Ethereum to scale to a point in which decentralized applications with millions of users can be launched and sustained.

There are many multi-billion dollar conglomerates and financial institutions in the Ethereum industry developing decentralized applications and platforms on top of the Ethereum protocol. The emergence of efficient and innovative scaling solutions will create a better environment for decentralized applications and will allow highly anticipated projects such as decentralized cryptocurrency exchanges and marketplaces to evolve.

If support and enthusiasm toward Ethereum in South Korea are sustained in the mid-term, it is highly likely that the South Korean Ethereum exchange market could evolve into an Ethereum powerhouse. As Buterin noted in the interview with JoongAng in the upcoming years, applications of Ethereum in a variety of industries will be tested and implemented.

Buterin explains:

“I would say that Ethereum’s main benefits are in its generality and in its utility to many kinds of industries. There are applications in finance, identity, supply chain tracking, health care, energy and many other areas. This is a result of Ethereum deliberately being designed as a general-purpose programming platform.”

And now, given the overnight news from South Korean regulators, it appears Ethereum has that chance...

As CoinDesk reports, the governor of a South Korean financial regulator has said it has "no plans" to supervise cryptocurrency trading, according to a report.

In remarks made to reporters today, Choe Heung-sik, chief of the Financial Supervisory Service (FSS), said that, since his agency does not view cryptocurrencies as "legitimate currency," the FSS does not intend to supervise trading of the digital assets.

According to a Korea Times report, Choe added the South Korean government believes that cryptocurrencies are used in speculation, not as payment tools. As a result, the watchdog considers that cryptocurrencies are not financial products, nor is trading them a financial service.

He said:

"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."

The watchdog head's comments come amid growing popularity of cryptocurrency trading in South Korea, and may have been prompted by the recent outage of major domestic exchange Bithumb, which recently experienced a technical outage that reportedly lost traders billions of won.

But his comments appear to have quelled any anxiety among speculators, as is clear by the reaction in Ethereum - the South Koreans' confidence is back...


Which leaves Ethereum solidly in 2nd place among crypto market caps...


Gap Admirer AlphaSeraph Thu, 11/23/2017 - 11:47 Permalink

Many applications exist for algorithms that generate unique, encrypted, sets of 1s and 0s. That's true. With most crypto code being open source, the algorithms are freely available to anyone with a computer. No reason for the big contract players to pay a kid in his mom's basement for his copy of the algorithm or the 1s and 0s that his copy generated.Of course that doesn't mean that cryptos aren't awesome money making speculation vehicles. They are! It's great that so many ZHers are riding the rocket up.

In reply to by AlphaSeraph

MANvsMACHINE Number 9 Thu, 11/23/2017 - 11:31 Permalink

Don't fool yourself. There is certainly manipulation going on. The players may be different but just know that a lot of what we are seeing in this space isn't natural trading.

ETH was stuck at $300+/- for months while many other cryptos were moving up and, in some rarer instances, down. All of a sudden, ETH begins an upward move which I believe won't stop until it's over $600 but know that there are people/groups behind these moves.

While I like ETH in the short term, look out for NEO and EOS to challenge them over a longer time horizon.

Regardless, there are oodles of coin to be banked across the cryptocurrency world over the next few years but always keep some powder dry for the eventual crashes that will occcur along the way.

Patience is truly a virtue when trading the alt coins since many make huge sudden moves with no forewarning.

Good luck to you.

In reply to by Number 9

HRClinton Five Star Thu, 11/23/2017 - 11:11 Permalink

This MIGHT only screw or inconvenience the holders on the US Plantation. As I said before, if or when I plan to convert a large chunk of my cc into the Plantation fiat currency...   1  My cc and I will be in a non-US, "tax friendly" jurisdiction.    2. Whatever conversion there is into cash, will not involve the USD. De-Dollarization!You add 1 and 2, and you have (a) no jurisdiction, (b) no legal case, and (c) flight of Capital. And they say that Rickard is supposed to be a smart guy. Lulz.Got clarity?

In reply to by Five Star

Ajax-1 Five Star Thu, 11/23/2017 - 11:20 Permalink

The IRS has been covertly involved from the begining working in concert with the western central banks to develop a global digital crypto currency. Bitcoin vs Etherium vs various others. They are all test pilot programs conceived, developed and financed by various central banks utilizing blockchain technology. Those of you whom are Gung Ho thinking you are "sticking it to the man" (Central Banks), by utilizing it are delusional.

In reply to by Five Star

Rhetorical Five Star Thu, 11/23/2017 - 11:39 Permalink

Good luck with ones outside the U.S.If they  somehow manage to freeze those exchanges then we will just move to decentralized ones like Kyber Network which is designed by ethereums founder. Etherdelta is another decentralized exchange that is also already up and running. Though its a PITA to use. 

In reply to by Five Star

red1chief Thu, 11/23/2017 - 10:59 Permalink

Nothing there, it's even right in the name: "Ether". Of course the cryptos will only crash after the naysayers have been discredited and the manipulative bankers cash out. Until then, party on!

Calculus99 Thu, 11/23/2017 - 11:00 Permalink

Lots of conflicting info about ETC. Some say it's great and going to play a major major role. Others say it's bad programming and won't last. Comments anyone?

Calculus99 Thu, 11/23/2017 - 11:03 Permalink

IRS is all over CCs. They won't let anyone get away with no pay taxes.The only way to dodge taxes is WAY before you buy any CC.Basically you have to think long and hard about how to buy them with no financial trail AND keep them hidden. Very possible but only if you did the initial work. If not, odds-on they'll get you...

HRClinton Calculus99 Thu, 11/23/2017 - 11:26 Permalink

Thinking long & hard might be something that low IQ peeps have to do.I simply bought CC several (>4) years ago. In cash, from a Chinese miner. It's resting in a cw (cold wallet). Trace that, bitch!I'm amazed at how peeps go off half-cocked, or just regurgitate some slogans, w/o doing some value-added critical thinking. Stop spreading BS and FUD on behalf of the (((Masters)))!Got IQ? Got clarity? Keep de-Dollarizing into the PARALLEL Economy, until the US Plantation (((Masters))) choke on their Debt-Currency!

In reply to by Calculus99