- South Korea Banking Association alarmed by altcoin trading.
- The altcoin trading volume increased across crypto exchanges in the crypto.
- BTC price trades at 4.15% on Upbit and on Bithumb at 9.13%.
South Korea’s banking concerns want crypto exchanges to be cautious about the risks of being exhausted to altcoins.
Moreover, the cryptocurrency other than Bitcoin(BTC) is referred to as Altcoin. Altcoins share characteristics with Bitcoin but they are different from one another. Altcoin comes in various categories depending on its functionalities and consensus mechanisms.
Hence more, the altcoin trading volume increased across crypto exchanges in the crypto. So the Korean federation of banks has raised alarm over it.
Accordingly, on Monday Korea Herald reported, the banking association has asked member banks to conduct an audit on the altcoins being offered by their crypto exchange clients.
The potential risks of banks providing account services to exchanges exhausted to altcoins, concerned by the Korea Federation of Bank.
Korea Herald explained,
“One of the criteria that we recommend is the safety of digital assets and that can be measured by the number of digital coins on an exchange. If an exchange deals with too many digital assets, it takes no more risks.”
Furthermore, in South Korea, there has been a noticeable pivot by crypto traders towards altcoin. This shift conflicted with a corresponding decrease in the price of the Bitcoin(BTC) in the trading.
Even More, Upbit, Coinone, and Bithumb are the three of South Korea’s “Big Four ” crypto exchanges. In these exchanges, there are 150 altcoins on their list. The BTC trading on these exchanges accounted for less than 5% recommended by the KFB. The average across the major exchanges link Coinbase and Binance is far lower.
The one which occupies the top two positions in the last 24 hour period is Coinone which has Bitcoin trading activity. But now as per the data from CoinMarketCap shows BTC price trades at 4.15% on Upbit and on Bithumb at 9.13%.
Under South Korea’s real-name crypto trading exemplar. The responsibility is on banks to maintain strict oversight over their cryptocurrency exchange clients and the reason for the KFB’s warning. The clients also need to realize the laundering risks, which could be associated with the current altcoin trading explosion. This suggested by the banking associations.
Although, another piece of evidence in the support of the alt season market cycle narrative in South Korea altcoin trading gush. Bitcoin’s market capitalization dominance is now at its low level since July 2018 due to its continued decline.
Hence more, many major altcoins have set new all-time highs. With Ether(ETH) breaking the $4000 milestone and deliver over 450% in year-to-date gains.
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