South Korea will stay out of the global Bitcoin futures’ race – country’s Financial Services Commission just banned trading cryptocurrency derivatives.
Is it different from the ban on ICO?
Actually, yes. In September, South Korean regulators banned cryptocurrency-based fundraising activities (in other words, ICOs). Also, earlier the National Tax Service hinted at collecting tax from payments made in cryptocurrency. Bitcoin futures is a different story aimed to put the cryptocurrencies in familiar terms for large investors.
Why is it important
Bitcoin futures is a hot topic now. The product will be offered to investors on the Chicago Board Options Exchange in the United States from Sunday, then CME Group will start trading futures from December 18. Staying away from it now will prevent South Korean companies to use the market firstcomers’ advantage.
What can we learn from it
- As a result of the official ban, Korean brokers had to cancel pre-planned client meetings for Bitcoin futures trading.
- The whole decision just signals that the South Korean government is not planning to take it easier on crypto market – at least, for now.