south-korea

Jan 10 2021

Top 5 cryptocurrencies to watch this week: BTC, ADA, EOS, THETA, AAVE

During an interview with Bloomberg, Grayscale CEO Michael Sonnenshein said that in addition to hedge funds, pension funds and endowments had also started investing in the Grayscale family of products. This suggests that a broad spectrum of institutions are accumulating Bitcoin (BTC).

As this trend gathers speed, investment banks have also decided that they do not want to be left behind. A recent filing from Morgan Stanley shows a purchase of a 10.9% stake in business intelligence firm MicroStrategy, a move that was likely made in order to gain exposure in Bitcoin. With 70,470 Bitcoin in their possession, MicroStrategy has become a proxy play on Bitcoin.

Several analysts suspect that the current demand could also be coming from investors who have been closing their gold positions and buying Bitcoin. On a query about the recent underperformance of gold, CNBC Mad Money show host Jim Cramer speculated that institutional money may be flowing into cryptocurrency.

*Crypto market data daily view. Source:* *Coin360*

While there have been positive reports about institutional purchases, traders should also keep track of the people who have been selling because at some point the rally will lose momentum and investors will look to book profits.

Analysts at Material Indicators suggest that mega whales may have booked profits on Jan. 7 when Bitcoin hit $40,000 and further selling from whales could also be the reason for the price drop seen today. However, aggressive buying at lower levels resulted in a strong rebound.

But that has not deterred the whales from selling. Bitcoin whales in South Korea have been dumping their positions over the past few days, as seen from the multiple $100 million deposits to exchanges. While the selling has not caused a massive rush to the exit, traders should be careful with their positions because even if a couple of large investors in the U.S. rush to the exit, it could result in a sharp fall.

If Bitcoin corrects sharply, most altcoins are also likely to follow suit, but if Bitcoin remains strong, these top-5 cryptocurrencies could outperform in the short term.

Let’s analyze their charts to spot the critical levels to watch.

BTC/USD

Bitcoin has been in a strong uptrend for the past few weeks, but the rally has pushed the relative strength index (RSI) into overbought territory. While markets can remain overbought for a long time, with every rise, the risk of a sharp correction increases.

The first support on the downside is the intraday low made on Jan. 8 at $36,518.73. If the price rebounds off this level, it will suggest that traders are not booking profits in a hurry and are buying on minor dips.

If the bulls propel the price above $41,959.63, the uptrend could resume with the next target objective at $45,000 and then $50,000.

However, if the bears sink the price below $36,518.73, the BTC/USD pair could drop to the 38.2% Fibonacci retracement level of the most recent leg of the up-move at $32,816.03.

This is a crucial support to monitor because if it cracks, several traders may start to panic and dump their positions, which may result in a deeper correction to the 61.8% retracement level at $27,167.10.

*BTC/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows that the price is currently stuck inside a $38,000 to $41,959.63 range. If the bulls can push the price above the range, the uptrend may resume.

On the other hand, if the bears sink the price below the support of the range, it will suggest profit-booking by traders.

The next support on the downside is the 50-simple moving average, which has not been breached decisively during previous corrections in this leg of the uptrend. Thus, if this support cracks, it will signal a possible trend change.

ADA/USD

Cardano (ADA) is currently consolidating in an uptrend. The altcoin has been stuck between $0.2632811 and $0.3542857 for the past few days, which has pulled down the RSI from deeply overbought levels.

The bulls are currently facing stiff resistance near the $0.34 level but one positive sign is that there are no signs of panic selling yet. If the bulls can drive the price above the overhead resistance, the next leg of the uptrend could resume.

The ADA/USD pair has a target objective at $0.449 but the bears are likely to mount a stiff resistance near $0.40. However, if the bulls can push the price above the resistance levels, the pair could rally to the psychological level at $0.50.

This bullish view will be invalidated if the pair turns down and breaks below the 20-day EMA ($0.234). Such a move will suggest that the uptrend may have topped out.

*ADA/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows the formation of a symmetrical triangle, which usually acts as a continuation pattern. The bulls are currently attempting to defend the 20-EMA. If the price rebounds off the current levels, the bulls will try to push the pair above the triangle.

If they succeed, the pair may rally to $0.525. However, if the pair drops below the triangle, the next support is at the 50-SMA, but if this support also cracks, the decline could extend to $0.20.

EOS/USD

EOS has been trading inside a large range between $2.20 and $3.949. The altcoin turned down sharply from the overhead resistance today, which shows aggressive selling by the bears.

However, if the bulls defend the moving averages, the EOS/USD pair may again attempt to rise to the overhead resistance near $3.949. A breakout of this level will suggest the start of a new uptrend that may reach $5.698.

This view will be invalidated if the bears sink and sustain the price below the moving averages. Such a move could result in a fall to the support of the range at $2.20 and that may keep the pair range-bound for a few more days.

*EOS/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows that the price turned down sharply from the overhead resistance and broke below both moving averages. This suggests aggressive selling by the bears.

However, if the price rebounds off the current level and rises above the 20-EMA, it will suggest that the selling may be over. The bulls may then again try to carry the price to the overhead resistance.

Conversely, if the bears sustain the price below $3, the pair may drop to $2.50 and then to $2.20.

THETA/USD

THETA is currently consolidating in an uptrend for the past few days. The price has been making lower highs, which suggests that every attempt to rally is being met with selling from the bears.

However, a minor positive is that the bulls have not allowed the price to dip below the $1.7611 support. The 20-day EMA ($1.74) is just below this level and the bulls are likely to defend it aggressively.

If the bulls can push the price above $2.20, the THETA/USD pair may rise to $2.51. The upsloping moving averages and the RSI in the positive territory suggest bulls are in control.

If the bears continue their selling and sink the pair below the 20-day EMA, it may open the gates for a drop to the 50-day SMA ($1.12).

*THETA/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows a descending triangle formation. The flat moving averages and the RSI just below the midpoint suggest a balance between supply and demand.

If the bears can sink and sustain the price below $1.7611, the descending triangle pattern will complete and that could drag the price down to $1.01.

On the other hand, if the bulls can push the price above the triangle, it will invalidate the bearish pattern. This could push the price to $2.51 and if the bulls can thrust the price above this resistance, the up-move could reach $2.95.

AAVE/USD

AAVE is currently in an uptrend as it continues to make higher highs and higher lows formation. However, the long wick on today’s candlestick shows that bears are aggressively selling at higher levels.

The upsloping moving averages and the RSI near overbought territory suggest the path of least resistance is to the upside. If the AAVE/USD pair corrects further, a rebound off the 20-day EMA ($99.93) will confirm that traders are continuing to buy on dips.

If the buyers can push the price above $135.99, the uptrend could resume with the next likely target at $150.

However, if the bears sink the price below the 20-day EMA, the pair could drop to the 50-day SMA ($85). A break below this support could result in a fall to $70 and then to $60.

*AAVE/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows that the pair is trading inside an ascending channel. The bulls are currently attempting to defend the 20-EMA. A strong bounce could carry the price to the resistance line of the channel.

A break above the channel could result in a sharp up-move but if the price turns down from the resistance line of the channel, the pair may trade inside the channel for a few days.

If the price breaks below the 20-EMA, a drop to the support line of the channel is possible. A strong rebound off this support will keep the uptrend intact but a break below it could signal a trend change.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Top 5 cryptocurrencies to watch this week: BTC, ADA, EOS, THETA, AAVE

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Dec 23 2020

South Korean Digital Asset Management Platform Haru Hits $100M Total Transaction Volume Milestone

Haru, a South Korea-based digital asset management platform and a service brand name of Block Crafters, announced on Wednesday its total transaction volume has reached the $100 million milestone within 15 months of its official launch. Haru also revealed that its user number has exceeded 10,000. Founded in 2019, Haru offers products not for institutions, but for ‘all of us’. Haru’s products are open for all. Investments start at just $10 and there are no separate investor certification requirements.

“With Haru’s products, our professional traders use an algorithmic futures market trading and hedging strategy to increase earnings. Users do not need to study algorithms or frequently open the exchange app to check prices. If you’re an investor who wants to earn steady returns while just going about your daily life, then Haru’s service is worth considering.”

Haru further revealed that if a user deposits Bitcoin (BTC), Ethereum, (ETH), Tether (USDT) or Terra (KRT), the platform will pay out interest.

“If you want to freely select the deposit period, choose Haru Earn and if you want higher interest, pick Haru Earn Plus which has a fixed deposit period. For aggressive investors looking for additional returns, cryptocurrency fund Haru Invest offers an attractive option.”

Meanwhile, Haru noted its Haru Invest (USDT) is a product for those seeking returns while holding the stable coin Tether. Due to Haru Invest being a stable coin, Haru claims that the risk exposure to losing the principle is comparatively low.

“The Haru Invest USDT product (Surf with Volatility) targets a substantial annual profit rate. Additionally, Haru Invest only charges a performance fee of 15% of total profit if the annualized earning rate is at least 15%. The minimum lock-up period is one month, which can be extended if the user wants.”

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Nov 28 2020

In a Sign of the Importance of Fintech, Switzerland Finance Minister Ueli Maurer to Address Singapore Fintech Festival

Switzerland has emerged as a Fintech friendly jurisdiction and home to many blockchain-focused financial services firms. The country has long been an important banking center and the Swiss government is keen to maintain its status in a world that is going through a digital transformation.

In a sign of the importance of Fintech, Switzerland Finance Minister (Federal Department of Finance) Ueli Maurer will lead the Swiss participation in the forthcoming Singapore Fintech Festival, sponsored by the Monetary Authority of Singapore, that is scheduled to take place next month.

Switzerland Global Enterprise (S-GE) and the Swiss Business Hub ASEAN say that Asia remains an important market for the organization’s clients, internationally oriented Swiss SMEs. S-GE is the official Swiss organization for export and investment promotion supporting Swiss SMEs in their international business and helps innovative foreign companies to settle in Switzerland.

A Swiss delegation will again be present at this year’s Singapore Fintech Festival 2020 with a digital Swiss Pavilion. The goal of S-GE is to enable Swiss and Lichtenstein SMEs to realize their international business potential in new and existing markets. Singapore is, of course, a top Asian Fintech hub.

Maurer will lead the Swiss participation with a keynote speech titled “Fintech, Sustainable Finance and Innovation” followed by a panel discussion on the strengths of the Swiss financial center that includes the participation of: Thomas Gottstein, CEO Credit Suisse Group AG; M Ralph Hamers, CEO UBS AG, and Herbert J. Scheidt, President of the Swiss Bankers Association presenting their views. This session will be telecast “live” from the SIX Convention Point in Zurich on 7 December (5 pm SGT).

Registration for the Swiss satellite event can be completed here and is free to the public.

According to S-GE, seven Swiss Fintech companies will highlight their strengths in financial services technologies including regulation technology (Regtech), blockchain solutions, big data and analytics, algorithm trading and cybersecurity. The event presents an opportunity for Swiss Fintechs and their interested stakeholders in Asia to connect and build business linkages in a seamless manner.

The Swiss Fintech industry is said to be highly interested in Singapore, which is seen as a gateway into Asia. Interest in garnering a greater presence in Singapore arises from the Switzerland’s Fintech cooperation framework and agreements with ASEAN, China, India, Japan, and South Korea.

H.E. Fabrice Filliez, Ambassador of Switzerland to Singapore, says:

“The participation of the Swiss Pavilion at the annual Singapore Fintech Festival is an anchor initiative. In 2020, the participating companies will reflect the robustness of the Swiss finance ecosystem, paving the way for collaborations and partnerships in co-innovation and fresh ventures. With Singapore being Switzerland’s most important trading partner in Asia, Swiss fintech companies view the republic as an important gateway to the wider Asian economic region.”

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Oct 16 2020

South Korean Blockchain Advocacy Group Calls for Tax Laws Postponement

However, while adoption appears to be on the rise in South Korea, industry experts have also urged the government to create an encouraging environment or players.

A Short Implementation Window

Most notably, industry experts have called on the government to nix its proposed crypto tax plan for now. Earlier this week, local news source News1 Korea reported that the Korea Blockchain Association (KBA), a blockchain and crypto advocacy group, requested that the government postpone implementing its crypto tax framework for 18 months.

The South Korean government’s proposed tax plan has been a particular sticking point for many in the country’s crypto space. The plan was published by the Ministry of Finance and Economy in July, with the Ministry stipulating that taxation for digital assets is a necessity as these assets continue to penetrate the traditional financial system.

Under the new framework, the Ministry plans to categorize all gains from digital assets and intangible assets as taxable income. However, any income below 2.5 million won (about $2,000) per year falls below the Ministry’s minimum threshold and will be tax-exempt. All income above the minimum threshold will be subject to a 20 percent tax rate, on par with the tax rates for most other capital gains and taxable income in the country.

The tax laws apply to local and foreign transactions that trade digital assets via South Korean exchanges. Under the new rules, exchanges will be responsible for all tax deductions and paying the monies to the Korean customs office.

While the laws should come into effect on October 1, 2021, the BKA asks for a delay until January 1, 2023. As News1 Korea explained, the window for adjustment is too short, and exchanges won’t effectively adapt to the new tax regime. As the advocacy group explained, exchanges will be allowed to report on trades using the soon-to-be-outdated tax policy until the end of September. A 24-hour period will be too short for them to make the necessary changes.

Ineffective Reporting

Oh Gap-soo, the BKA’s Chairman, also explained that a suspension of the tax code would be necessary since it is the first time the government is getting involved in digital asset taxation. He pointed out the possibility of regulators not accepting crypto firms’ reports – a possibility that could lead to sub-optimal operation

“The industry is having a great deal of difficulty in preparing for taxation because it is not equipped with a tax infrastructure in a situation where it is uncertain whether or not the business will continue ahead of the enforcement of the Special Payment Law.”

Besides the taxation laws, South Korean exchanges are also fighting back against the government’s mandatory identity verification rules. As Digital Today reported last week, the new regulations require exchanges to collect several details from their customers, including and especially social security numbers. However, that is a direct contradiction to the country’s Personal Information Protection Act.

South Korean Blockchain Advocacy Group Calls for Tax Laws Postponement

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Oct 11 2020

CBDCs: Bank of Korea Is Reportedly Planning to Issue and Circulate a Central Bank Digital Currency in 2021

The Bank of Korea (BOK), the reserve bank of the Republic of Korea and issuer of South Korean won, is reportedly planning to issue and circulate a central bank digital currency (CBDC) by next year.

As first reported by the Korean Times, the BOK will be assessing whether its CBDC may be successfully or effectively used by local businesses and individuals for everyday transactions. The digital currency testing is being conducted after two years of ongoing research and development (R&D) performed by the BOK.

The South Korean reserve bank stated that the virtual currency experiment aims to determine whether the new form of digital payments can effectively replace cash or more traditional forms of settling transactions. The BOK’s virtual currency research team is planning to deploy the servers needed to conduct testing.

A BOK representative confirmed:

“We will create a virtual environment by using blockchain technology and test whether our CBDC can be used for real-world transactions. The CBDC will be issued and circulated in the virtual world and we are going to test a number of transaction scenarios under a variety of circumstances.”

The representative added:

“For now, the BOK does not have any plans to partner with any private companies over the test, and this will be carried out on our own.”

The Korean reserve bank noted that it’s currently in the analysis stage of the initiative. The institution explained that it’s CBDC pilot is part of a three-step process (with analysis being the second stage). The virtual issuance and circulation of the bank’s digital currency will be part of the final phase that’s planned to begin at some point in 2021.

The BOK had finalized the first-phase review of the initiative in July 2020. The bank is now focused on developing a CBDC system architecture with the help of a consulting partner firm.

China appears to have taken the lead when it comes to developing a CBDC. The country, which is home to around 1.5 billion people and has the world’s second-largest economy, recently revealed that its Digital Currencey Electronic Payment (DCEP) system (the pilot version) has already processed hundreds of millions of dollars in transactions with many consumers creating new wallets or accounts.

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