Korean Exchanges are on the edge of Bankruptcy due to Low Volume Transactions
A current report has arisen from the Business Korea which says that many of the domestic cryptocurrency exchanges may face the danger of bankruptcy because of low transaction.
The report claims that in terms of transaction volume, there are just five or six South Korean exchanges that are included in the world’s top hundred cryptocurrency exchanges.
As report says
It is no exaggeration to say that 97 percent of domestic exchanges are in danger of going bankrupt due to their low volume of transactions.
However, no hard data is given by the report which can support its claim but the report said that recently because of a dropoff in cryptocurrency trading volume, one cryptocurrency exchange was closed. The reason behind this shutdown was told to CoinDesk by a representative of Coinnes that was a natural result of a decrease in trading transaction volume and some of the regulatory issues.
Many of the South Korean crypto startups are now trying to make a list of their coins on overseas exchanges because of this low transaction volume in South Korea. It was also said by the report that the Korean won money market is recently opened by the foreign cryptocurrency exchanges which will attract the projects of South Korean cryptocurrency.
Binance and BW.com have shown their interests in the cryptocurrency projects of South Korea. Bw.com has also made an agreement with Ziktalk, Storichain, Payexpress, and Sigma Chain and now it is going to open won market at the end of this month in order to attract cryptocurrency investors.
The report also said that in order to attract Korean startups, Korean blockchain projects are being accelerated by the Binance labs. In June, a Korea-based cryptocurrency BOScoin was listed by Singapore-based Bitholic.
Some tougher conditions of cryptocurrency market are allegedly giving their efforts to list abroad. This fact was also added that the investors do not have permission to make or withdraw deposits in Korean currency at Korean exchanges.
It was not allowed to 200 small exchanges to open real-name virtual accounts. In the report, a picture of the South Korean cryptocurrency market was painted that stands in contrast to the cryptocurrency industry of the country in late 2017 and early 2018. 20% of the world’s Bitcoin trading volume came from South Korea in December 2017.
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