Blockchain Association Criticized for South Korea Exchange Approvals

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South Korea Exchanges

Following the last week’s decision of South Korea Blockchain Association to approve 12 crypto exchanges, a lot of crypto investors seemed shocked that Bithumb received a pass. According to the review, all of the exchanges that were approved are in possession of proper security and internal management systems.

Blockchain Association Gives a Pass to 12 South Korea Exchanges

The new development in South Korea has seen up to 12 South Korea exchanges being approved by the country’s Blockchain Association. According to the association, all of the exchanges are currently properly secured, with the adequate internal management systems.

Following this announcement, the local publications have stated that a large inflow of capital is expected to come to the crypto market of the country. This is yet another positive development for cryptos, and it came almost immediately after the country has legalized digital currencies. Due to these expectations, the country’s government has demanded that South Korea exchanges tighten their security even further.

The country seems to be preparing itself to go full crypto and aims to improve the sector and allow crypto companies and startups to grow and develop. After the government’s announcement that the crypto market will be legalized, the exchanges needed to be placed on hold until they are regulated as proper financial institutions.

This is where the country’s Blockchain Association comes in to estimate which exchanges are properly equipped to handle the new wave of income, as an institution in charge of overseeing the crypto and blockchain industry. The new reports state that South Korean exchanges that were approved include Bithumb, Gopax, Korbit, UPbit, OKCoin Korea, CoinZest, HanbitKor, Coinone, Huobi Korea, CPAXX, DexKor, and NeoFrame.

Investors Against Approving Bithumb

The approval of all of these exchanges was not accepted as well as it was expected, especially when it comes to the approval of Bithumb. Despite the fact that approving so many exchanges is definitely a good thing as a whole, the investors started to wonder whether all of these exchanges are actually ready to be back in the game.

The reason for this is the recent hacking incident that hit Bithumb. During the hack, the exchange lost more than $40 million, and so far, only $16 million was retrieved. This has caused a lot of crypto users to completely lose confidence in this exchange, which has had to halt all the transactions ever since the hack. This also means that the users could not withdraw their funds, which have remained under lockdown.

Now, however, the Blockchain Association claims that this South Korea exchange is perfectly capable of operating and that the security meets the demands imposed by the regulators, which many have found hard to believe. Additionally, the FSC’s (Financial Services Commission) chairman, Kim Yong-bum, has stated that “The government’s practical policies led the ‘Kimchi Premium’ to disappear in South Korea.”

Kimchi Premium managed to reach 50% at its peak, which was caused by a large and unpredicted spike in demand. However, the FSC’s chairman has also said that the crypto prices in South Korea are almost identical to those in other markets. This is a clear indication that South Korea’s crypto market is stable and ready for the next step.

A lot of investors demanded that the government eliminates Bithumb from the list of approved exchanges, in fear that the situation with Kimchi Premium might happen again. The main fear is that the value of cryptos on Bithumb might drop, which would reflect negatively on the entire market.

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