The strategic role South Korea holds in the Cryptocurrency space is unknown to most crypto enthusiasts around the world. However, the leap and the role the country has shown as a tech hub for electronics, tech giants, esports, and global innovation affirmed the recent report of Cindicator that the country is vital to the full Cryptocurrency adoption.
Cindicator in its recent report arrived at its opinion based on its review of data on exchange volume, recent economic history, regulations, and trend after its critical analysis.
Why South Korea Is Key To Crypto Adoption
South Korea which has a population of about 50 million and one of the top 15 economies in the world is key to the wide adoption of Cryptocurrencies around the world based on its exchange infrastructure, a high level of tech adoption, and the regulatory and tax framework of the country.
The country does not get a cut in the list of the top Cryptocurrency friendly countries in the world, which always include Malta, Singapore, Switzerland, and Estonia. However, its status as a member of the Cryptocurrency friendly countries in the world is espoused in the insatiable desire of its populace for Cryptocurrencies.
Oblivion to the world, Cindicator’s reveals that South Korea accounts for the 30% of the total of the world’s Cryptocurrency trading. Also, the country has 30% of its salaried workers owning and trading different types of Cryptocurrencies. This can be said to have been impacted by the robust economy of the country which and the highly developed Cryptocurrency exchange.
The robust Cryptocurrency exchange structure that supports the economy is inclusive of Bithumb, upbit, coinone, korbit among others. Notably, these exchanges as revealed in the cindicator’s report have been influential in the crypto space. An announcement of a possible listing of any altcoin on the exchanges has influenced the rise of the value of such Cryptocurrency. The report summed this up in stating that Korean exchanges are a key element in the analysis of the crypto phenomenon in Asia.
Crypto Development and Taxation in Korea
The wave of development initiated by the Korean crypto exchanges is also a factor in its leading role in crypto adoption. Notably, Coinone effort on a blockchain project aimed at making money transfer easier around the globe indicates this. Also, Bithumb recently partnered Qoo10, a company widely known as the Asia amazon. This is expected to boost the use of Cryptocurrency for eCommerce in Asia.
Further, the renewed zeal of the country towards crypto regulation is set to boost crypto growth in the country further after surviving the scary effect of Ponzi schemes and scams the country is set to invest 1 trillion won (USD $880 million) on blockchain development in 2019 a part of 5 trillion won package to stimulate the economy through innovation.
Furthermore, the high taxation rate of South Korea is not effective on Bitcoin and other Cryptocurrencies which are exempted from capital gains. This practically makes the country a haven for crypto traders and investors.
Based on the findings, Cindicators opened that South Korea is key to crypto adoption globally, because of its openness to new technology.