Kimchi Premium, the huge difference between supply and demand: Leggi qui l’articolo in Italiano

South Korea is one of those countries who have from the beginning, showed interest in trading of cryptocurrencies.

Due to this particular willingness, the Commission for Financial Services has defined new rules that will have to boost transparency, on the totality of the environment including the dealing of virtual values.

The aim of this, was since the beginning to provide a bunch of guidelines to those operators, like traders, banks, and exchanges involved in transactions, to help them avoid the proliferation of illegal actions such as money laundering, anonymous accounts or even hacking on any platform. Rules have to prevent what occurred to the detriment of the largest Korean exchange Bithumb, that was seen to subtract crypto values for the same value, of over 27 million euro.

Authorities have in their sight three local banks ( Nonghyup Bank, Hana Bank and KooKmin), for suspected money transfers, besides the Kimchi Premium, such as the spread between the Cryptocurrencies prices in South Korea and the ones in the rest of the world.

This spread arises due to the huge difference between supply and demand, up to the 40% on the average price.

Authorities of Financial Services have put their focus on endowing administrations, of not only a higher control throughout cross-checks of exchange users but also a special unit in the Korean Intelligence. The meaning at the end is to have users with verifiable identities and responsibilities, that will generate repercussions involving directly the exchanges