Crypto Industry News:
Heads of cryptocurrency exchanges who do not register with South Korea’s main financial regulatory authority may soon face imprisonment.
The National Assembly’s parliamentary subcommittee adopted a legal amendment to the law on Information on Special Financial Transactions, which is still being developed, to force virtual asset exchanges to register with the Financial Services Commission (FSC). Those who fail to do so would face up to five years in prison or a fine of up to 50 million won ($ 42,460).
In accordance with the amendment aimed at bringing the industry into line with international FATF anti-money laundering guidelines, cryptocurrency exchanges must also have so-called virtual accounts with real names – sub accounts for users on the main exchange account – to avoid violation of regulations
According to the publication, opposition legislators have expressed concerns that exchanges with anonymous virtual accounts will be forced to close, which will further shrink the domestic cryptocurrency industry.
At the beginning of 2018, the FSC banned anonymous virtual accounts, as a result of which only four exchanges with virtual accounts with real names remained under agreements with local banks: Bithumb, Upbit, Corbit and Coinone. As a result of these concerns, the change, if adopted, will make it easier for exchanges to qualify for virtual accounts with real names.
Lee Jun-Haeng, general manager of the Gopax exchange, which does not yet have a virtual account with a real name, said that the change will make the market “healthy” if the system is fair.
The regulations also relaxed the obligation to certify the exchange information security management system. The committee agreed to grant a grace period to resubmit the application in the event of an initial failure to certify.
The Act would ultimately mean that the cryptography industry would move out of the gray regulatory zone and enter the system as regulated financial institutions such as banks.
“It is expected to be the first step in the development of consumer protection and a stable market,” said Jae-Jin Kim, Secretary-General of the Korean Blockchain Association.
Technical Market Overview:
The ETH/UDS pair is still under the pressure from the supply side as bears have managed to push the price lower towards the technical support located at the level of $152.28. If this level is clearly violated, then the sell-off might start and extend the move towards the level of $151.37, which is a key short-term technical support and a swing low for wave 2. Violation of this level invalidates all impulsive upwards scenarios and makes the corrective cycle more complex and time-consuming.
Weekly Pivot Points:
WR3 – $203.37
WR2 – $196.19
WR1 – $190.39
Weekly Pivot – $183.21
WS1 – $177.25
WS2 – $170.00
WS3 – $164.35
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.
The material has been provided by InstaForex Company – www.instaforex.com