The bear market is still affecting the crypto industry. Because of this, the fifth-largest cryptocurrency exchange in Korea, Coinnest, has shut down. Investors have until the 30th of this month to pull out their assets.
The effects are still coming
Despite the effects of the bear market, there were also some attacks that hit the exchange over the past year. According to CCN, these “scandals” were also self-inflicted.
According to the publication, around this time last year, two leads at the company were accused of taking bribes to list new tokens on the cryptocurrency exchange. Then, come January of this year, the platform sent an airdrop of over $5 million in both Bitcoin (BTC) and Korean won due to a technological error. While the platform asked everyone for the funds back, not many actually followed through with this.
Since this announcement, Coinnest noted that it will also lower withdrawal fees. This will make it easier for investors to pull out their currencies.
The Korean crypto industry is dealing with regulators
Moreover, the cryptocurrency industry in South Korea is also struggling. There, President Moon Jae-in has gone on to ban initial coin offerings (ICOs) and even removed tax breaks for cryptocurrency companies according to the publication.
Regardless, cryptocurrency enthusiasts are still spreading throughout the country. They’re unhappy with the governmental stance on digital assets, but still holding strong regardless.
That said, things might change sooner rather than later. For example, the co-founder of Ethereum, Vitalik Buterin, recently spoke to the South Korean government asking them to clear up the limiting laws and regulations surrounding the technology.
Of course, no matter who speaks or what is said, the government makes the final decision here. As you may know, the cryptocurrency industry is still searching for mainstream adoption and acceptance across the world. There are some countries, like Malta, who thoroughly accept this new technology. Others aren’t as big of fans of Bitcoin trading. It’s only a matter of time before we see where the technology will eventually thrive and where it will fail.