A south crypto investor Yoon Hee-ri, 26 years old, has recently bought a crypto coin called Metadium in April and is currently seeing it almost wiped entirely from existence. He is one of the many South Korean retail investors who have invested in “altcoins” or basically bitcoin alternatives.
Yoon has won numerous smaller cryptos before until it saw a drastic decline in value when the Korean regulators started to crack down on these cryptocurrencies. For all the latest news in the world of tech, industry, and even economy, always tune in to Asiaone Singapore.
The new crypto regulation
If you didn’t know, by September 24 of this year, all cryptocurrencies and their crypto exchanges will be required to disclose risk management to the public, as well as an established partnership with existing banks. This is to ensure trading accounts of actual real people.
Additionally, the new trading regulations wanted to target any potential money laundering activities in the country. According to the statistics, the majority of the crypto investors were under the age of 40, the age bracket where people could easily be influenced by such acts.
This relatively new regulation for crypto exchanges is believed to bring a huge impact towards delisting countless “altcoins” or alternative cryptos as they would need to find a bank that they can make partnerships with. Not to mention, they may inevitably run out of banks to partner with.
Yoon trades Metadium through Upbit, which is Korea’s largest cryptocurrency exchange. He said in an interview that he is one of the many traders who didn’t specifically look at the operator’s financial details or background when he first started trading for it.
He added that his investments were mostly based on the crypto’s popularity, as well as recommendations from friends and many other traders over the internet. According to him, this is perhaps one of the most crucial mistakes he failed to assess right from the very beginning.
Now he is completely worried about Metadium as it may be among the many cryptos that might become delisted before the September deadline. Since the new regulation was passed in March, only four cryptocurrency exchanges have been able to secure partnerships with local banks.
Seeking a secured partnership with an already established bank is part of the law that ensures further stability and a virtual asset service for these crypto providers. In the same way, Singapore Pools is a government-established website that provides a legitimate, safe, and secure environment for its players.
Additionally, the newly regulated crypto law also requires these exchanges to possess a security certificate from the country’s Internet Security Agency for added user protection. As of May, only a total of 20 crypto exchanges had obtained such security certificates.
The four crypto exchanges that were announced to have successfully made partnerships were Bithumb, Coinone, Korbit, and Upbit. It is a huge relief for Yoon to learn that his crypto exchange was at least among the ones that are listed as approved.
Yoon’s Metadium continues to fall at a 94% low since April. It is at 32.1 or $0.0281, one of the lowest for sure, on Upbit around the latter of June. More cryptocurrency exchanges have started to move dozens of altcoins off their platforms.
That said, Upbit has also halted the trading of 24 other altcoins under its umbrella. This includes Elbri Credits, Paca, Ignis, edX, Lambda, and Comodo, among many others. Bithumb, another major crypto operator who was listed approved, also has to pull out four coins recently.
Meanwhile, smaller crypto operators had to remove more than what these major ones have to. For instance, Probit has removed all of its whopping 145 coins altogether. This has certainly raised concerns among many cryptocurrency investors as these coins could have been withdrawn at a later time, perhaps nearer to the September deadline.