Binance Korea is closing due to insufficient trading volume

Less than a year after it opened, the South Korean branch of Binance is closing again.

Binance KR, the South Korean offshoot of the market-leading crypto exchange Binance, will cease operations

As can be seen from the corresponding press release on Thursday, the platform decided to take this step because of decreasing liquidity and low trading volume for its proprietary BKRW stablecoin. The BKRW is a Profit Revolution that is linked to the South Korean won at a ratio of 1: 1.

According to the press release, the closure will begin this Thursday, so that no new user accounts can be created. Trading will then cease from January 10, 2021, followed by a full shutdown on January 29. Accordingly, all users of Binance KR only have until January 29 to convert their crypto funds in the form of the BKRW stablecoin into the associated BUSD stablecoin or another cryptocurrency supported by Binance.

The Malta-based crypto exchange Binance only announced the founding of its South Korean branch in March

This confirmed previous rumors that the market-leading crypto trading platform, in cooperation with the fintech company BxB , would seek expansion into South Korea.

The low liquidity for trading the company’s own stablecoin in won is symptomatic of the low crypto trading volume in South Korea. As early as August 2019, there were reports that many of the country’s crypto exchanges were in trouble or had to close completely.

Strict legal requirements are also said to have forced many South Korean blockchain companies to list their cryptocurrencies on foreign exchanges, which torpedoed the trading volume even more. In 2020, South Korea’s authorities have finally legalized crypto trading , but the strict requirements remain in place.

Ron Paul: ‚We should do everything possible‘ to legalize Bitcoin

The former Texas congressman believes that the government is „watching very closely“ to see what happens to the crypto currencies.

Former presidential candidate and congressman, Ron Paul, has been more outspoken about government oversight of Bitcoin and other cryptosystems in the past week, asking people to „be on the lookout.

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In an episode of Stephan Livera’s podcast released Sunday, Paul said he was as concerned about authorities coming to „confiscate“ his gold as he was about the confiscation of cryptoactives. The libertarian noted that there have been cases of people „taking the cryptos that they shouldn’t,“ but apparently blamed the government for any possible fraud in the future.

„The more successful the crypto currencies and Bitcoin are, I think the more you have to be aware of what’s going on in the government will become more aggressive,“ Paul said. „I see [crypto currencies] not as a creature of the government, but the government is watching very closely.

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The former Texas congressman, an outspoken critic of the Federal Reserve, is known for his defense of gold, although he owns at least a small amount of Bitcoin (BTC). Bitcoin Foundation board member Bobby Lee gave Paul his first BTC last October when the price was $9,380.

Since he left the US Congress in 2013, Paul has often spoken out in favor of cryptosystems and Blockchain technology. „When I was in Congress, I thought the important thing is that we should do everything we can to legalize [Bitcoin],“ Paul said. „I had a bill that would legalize competing currencies because if it’s used as money, you’re competing with the dollar, and there are some people who don’t like that.

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Paul has also expressed concern that cryptomonies remain vulnerable to government repression. In an episode of the Ron Paul Liberty Report released last Tuesday, the libertarian cited how President Franklin D. Roosevelt signed an executive order in 1933 limiting gold ownership in the United States in response to citizens hoarding the precious metal.

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„People say ‚well, we can solve this with crypto currencies … crypto currencies will be out of this … they’re not in the banking system and you won’t have that problem,'“ Paul said. „I think that’s where there are still some tests to be done.

He concluded:

„If the government can come in and do what they want and steal people’s gold, I don’t think the government will be neutral [with crypto currencies]. As time goes by, the goal of our government is to have a cashless society. And they want to know what’s going on.

JP Morgan analysts predict more Bitcoin declines

JP Morgan analysts cite regulatory concerns and profit taking for the recent sale.

They also said that there was room for other downward moves driven by dynamic traders.

Analysts have said Grayscale will play a leading role in the continued rise or fall of bitcoin

The recent drop in Bitcoin’s price has erased some speculative „foam“, but further downtrends remain possible, analysts at JPMorgan Chase say.

For context, Crypto Genius scam started last week with a significant rise, hitting a new annual high of $ 19,500 before falling sharply (nearly 14%) on November 26.

The drop coincided with Black Friday , with BTC / USD falling around the same time as the famous discount shopping day, leading many to note the comparison.

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The main causes of the recession, according to a Bloomberg article , were profit taking, concern over new regulations and the unfolding of Bitcoin futures. Since then the price has recovered from the mini-crash and has risen again.

According to BeInCrypto’s analysis , its rally is likely a retracement rather than the start of a new uptrend.

Although Bitcoin rebounded from steep price declines over the Thanksgiving holiday, analysts at JPMorgan Chase also forecast further declines.

As quoted in Bloomberg, Nikolaos Panigirtzoglou, managing director of JP Morgan, said, “dynamic traders have room to spread further” [a drop in the price of bitcoin].

The importance of Grayscale

Panigirtzoglou also highlighted Grayscale, and its important Bitcoin Trust, as playing a central role in future developments in BTC prices.

The cryptocurrency asset management company has long been important because it would be favored by institutional investors looking to gain exposure to bitcoin (and other digital assets).

Grayscale has significantly increased its crypto holdings since the start of 2020. After eleven months of ever-higher gains, as of November 27, Grayscale’s assets under management (AUM) hit an all-time high.