After the recent announcements coming from CBOE and CME Group that they will launch Bitcoin Futures trading on 10th and 18th December respectively, South Korea took a different stance and announced that the trading of Bitcoin Futures is banned in the country.
The South Korean government find it difficult to come to grips with the whole market of cryptocurrency and recently revealed that they are working on regulating the digital currency exchanges and taxing profits made from cryptocurrency. South Korea also permanently banned initial coin offerings (ICO).
Despite the apparent regulations, the South Korean citizens have been aggressive buyers of cryptocurrency and have often been involved in the price swings seen due to market manipulation. Tony Lyu, CEO of South Korean exchange Korbit, explained:
“Word just spreads really fast in Korea. Once people are invested, they want everyone else to join the party. There’s been this huge, almost a community movement around this.”
Japan recently announced that the Tokyo Financial Exchange has started turning the wheels in order to lay a foundation for a Bitcoin Futures market. South Korean exchange platforms were planning to do the same thing, but on 5th December, the country’s Financial Services Commission ordered members of the Korea Financial Investment Association to stand down their plans to offer Bitcoin futures. Two Korean securities firms had already planned seminars for Bitcoin futures investors.