South Korea uses New York’s BitLicense to draw up its regulation system

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We won’t lie to you: most awesome things come from the US.

Hard as it is for us to admit, the truth of the matter is that the Americans are responsible for a lot of good things that we see in the world today. The US Constitution is secretly being copied and translated so it can be translated as “original” laws in some countries (don’t ask us how we know). Series we have grown up watching and are fascinated with now like “Necessary Roughness”, “Buffy”, and “NCIS” all come from the US of A, just like a lot of the stuff we eat and most of the things we wear.

Another fine invention from the US, the BitLicense system, which was created originally in the Big Apple itself, will be used as a “benchmark” for the new regulatory system used by South Korea. The authorities state openly that they don’t need to “get rid of or suppress digital currencies,” which is a definitely more liberal approach to the former stance Korea used to have with regard to cryptocurrency.

Bit-what?

You can see how BitLicense works here. We remind you that New York, which is as always ahead of the world, has set this framework that was to regulate the work of crypto exchanges in 2015. So did Japan, who is also known to be constantly ahead of their time. The rest of the world, it seems, is now following suit, adopting an ”if you can’t beat them, join them” strategy. For example, according to the Russian authorities, the bill concerning regulation of everything to do with cryptocurrency is ready and set to start taking effect in March.

The Bitcoin at the time of writing is worth a firm $10,704.58, almost $2000 more than at the end of the recent dip in price, which seems to suggest that as the cryptocurrency market is recovering. The countries all over are becoming more comfortable with the use of crypto technologies.

Why was the world skeptical about Bitcoin?

You will remember that in December the Bitcoin took a serious hit, falling to unseen lows of $9000 and more in early January/late December.

This was speculated to have something to do with the fact that major exchanges like Cex.io, Kraken, and Bitfinex have stopped new user registration due to an overabundance of data to process.

Kraken has issued a statement with Jessie Powell, the CEO, saying at the time: We certainly haven’t abandoned the exchange and we do care about making improvements. We had a nice roadmap for building our fancy new ship, which was blown up by the recent explosion of growth. Rather than be able to dedicate our efforts to the new platform, we’ve had to split efforts with water bailing and fire extinguishing.”

With a few major exchanges failing to process customer requests and people hanging on for days to have their transaction seen through, the market saw crowd panic, which resulted in rapidly decreasing prices. Korea also poured gas into the fire with its rumors of total bans. China shut down Huobi, BTCC China, and OKCoin. All that influenced cryptocurrency’s popularity and consequently led to a dramatic decrease in price – from $20 000 on some exchange to less than half that.

Why the world is warming up to cryptocurrencies

Since then the Bitcoin seems to have recovered well, coming back to over $10 000. It seems either that is due to the fact more countries are starting to accept it or maybe more countries are starting to accept it because of its bouncebackability.

One way or another it looks like Korea is now softening its stance, using a more democratic, Westernized approach to cryptocurrency. In this case literally by using the BitLicense blueprint to create their own regulatory framework.

The fact that the crypto prices are more stable now means the government starts to see cryptocurrency as a more tangible asset, taking the first steps toward making cryptocurrency their own.

We are very excited about a future with technologies as advanced as possible and will keep you in the loop about the latest and greatest developments on the Korean front and in the world all over.

Image courtesy of hype.ru