South Korea Calls For Urgent Meeting on Crypto

The South Korean Government had an urgent meeting to speak on cryptocurrencies and the exchange market. The government and central bank plan to create regulations and compliances for cryptocurrencies as they are high in demand. South Korean central bank official stated that there is an urgency to regulate this and it will go into effect very soon. Once this announcement was made by the bank official, cryptocurrency holdings dropped.
Currently, South Korea does not have any rules and regulations in place in regards to the lucrative market exchange. Exchanges have made an impact because they have complete freedom. South Korea is distressed with the Ponzi schemes cryptocurrencies to offer in the local exchanges. Thousands of people have been pawns in the game of fraud and scams of digital currency. The government recalled a scenario where scammers embezzled from investors by asking them to invest in their up and coming consulting firm. The scammers stole $200 million in funds! A big problem is a South Korean structure that is in place for Bitcoin and cryptocurrency exchanges. Digital currency is purchased through uncontrolled over-the-counter markets. Because of this, investors become victims of these schemes and scams. A solution that the South Korean officials have come up with is to require licenses for exchanges, in order for them to operate. The government believes that this solution will bring more investors through to regulated trade exchanges.
In other South Korean news, a teenager was arrested for creating a scheme to create a Bitcoin hard fork. People were upset because of the advertisement of this hard fork, called Bitcoin Diamond. This scam was brought to fruition by a South Korean high school student. The student calculated his plans by shorting the Bitcoin market, in turn decreasing the price of Bitcoin and announcing the hard fork. After the scam was brought to the authorities attention, the teenager was taken into custody and pleaded guilty to fraud.

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