China money attack on domestic crypto-currency
Kim Min Soo | minsu@ | 2018-05-30 10:02:36

The Chinese virtual money capital is entering the Korean market. For investors as the virtual money market in China is blocked and there is a growing expectation that the number of places to trade will increase, but there is growing concern that the domestic virtual money market may be subject to Chinese capital.

According to the crypto-currency industry on May 29, Korea - China joint venture virtual currency exchange Zynix opened earlier this month.

Meanwhile, Zynix is a virtual currency exchange created by financial experts from Korea and China. China`s largest security solution company `Chihuo 360`, and has been affiliated with a number of Chinese companies such as China`s block chain, coin media `Wisuje` and `Jinsha Ching Jing`.

Apart from this, the Chinese virtualization market exchange Gate Io also started operations in Korea this month. According to the Coin Market Cap, Gates Eye is currently the 18th largest exchanger in the world. The world`s No.1 virtual currency exchange OK Coin has also entered the domestic market last month in cooperation with NHN Entertainment and is now offering beta services. Huovio Korea, the world`s third-largest virtual currency exchange, entered into a domestic service agreement with Danal in March.

The main reason that the Chinese virtual currency exchanges are aggressively entering the domestic market is because the operation of the virtual currency exchange market in their country is strictly blocked by the Chinese authorities. China has banned virtual currency exchanges (ICOs) as well as virtual currency exchanges.

The virtual money market has cooled somewhat due to the strong regulation of the government in Korea, too. However, it is possible to operate through the exchange. Especially, unlike the US and Japan, there is no regulation such as exchange authorization. There are no barriers to entering the market.

Especially, the Chinese virtual money market exchanges offer annual salaries of more than 100 million won and attract huge financial talents. Virtual currency investors are engaged in aggressive sales with negative fees.

The dominance of the domestic virtual money market can be taken by these Chinese exchanges as the Chinese capital market gets into full swing, there are increasing voices pointing out that if the virtual currency regulation and system are not maintained.

An expert in the virtual currency industry mentioned, "Chinese virtual exchange traders are still not competitive, but they are key players in the global market." If the domestic virtual money market is transferred into the system and the real name account is received in the future, It will be a significant threat to exchanges."

The expert added, "Domestic virtual currency exchanges have no choice but to try to prevent membership deterioration by strengthening preferential treatment for excellent customers to protect their existing membership assets."

By Kim Min Soo minsu@

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