[Bitcoin Now] Maintaining 54 Million Won Despite Institutional Selling and Domestic Exchange Delisting Threats

Institutional Investors Sell for 6 Consecutive Weeks Amid Bitcoin Uptrend
Domestic Cryptocurrency Exchanges Still Inadequate in Preparing for Specific Financial Information Act Reporting
Beware of Sudden Closures and Embezzlement

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] Amid the rising trend of the leading cryptocurrency Bitcoin, institutional investors have been selling cryptocurrencies for six consecutive weeks. Additionally, results from on-site consultations by financial authorities revealed that domestic cryptocurrency exchanges are inadequately prepared for reporting under the Act on Reporting and Using Specified Financial Transaction Information (Special Financial Transactions Act, or Spec-Fin Act) related to anti-money laundering, yet Bitcoin remained around 54 million KRW.

According to the domestic cryptocurrency exchange Upbit, as of 11:05 AM on the 17th, Bitcoin was recorded at 54.26 million KRW, up 0.75% compared to the previous day. Although it slightly declined after rebounding to 55.74 million KRW on the 14th, it has not fallen below the 53 million KRW level.

Institutional investors appear to be selling cryptocurrencies. On the 16th (local time), cryptocurrency asset management firm CoinShares reported, “Institutional investors have been selling cryptocurrencies for six consecutive weeks,” adding, “The total amount of cryptocurrencies sold over six weeks is approximately 115 million USD (about 134.987 billion KRW).”

According to the report, cryptocurrency asset management firms such as Grayscale, CoinShares, and Purpose sold 22 million USD worth of Bitcoin and 1.1 million USD worth of Ethereum during the second week of August (August 9?13). On the other hand, they invested 1.3 million USD in Cardano (ADA) during the same period.

CoinShares explained, “This selling trend has come at a time when enthusiasm for cryptocurrency investment is cooling, similar to other assets,” and added, “The six-week selling volume accounts for only 0.2% of the total assets under management (AUM) of cryptocurrency asset management firms.”

Meanwhile, domestic cryptocurrency exchanges are still inadequately prepared to proceed with the Spec-Fin Act reporting procedures scheduled for September. On the 16th, the Financial Services Commission announced that after conducting joint on-site consultations with related ministries targeting 25 domestic cryptocurrency exchanges, there is a significant shortage of personnel and systems to carry out the Spec-Fin Act reporting procedures. It was also explained that proper evaluations of listed cryptocurrencies have not been conducted.

This situation is raising concerns about a wave of closures among cryptocurrency exchanges. Only 20 companies have obtained Information Security Management System (ISMS) certification, and only four?Upbit, Bithumb, Coinone, and Korbit?have secured real-name accounts. It remains uncertain whether even these four will pass the Spec-Fin Act reporting procedures. The Financial Services Commission stated, “Even if ISMS certification is obtained, failure to meet other requirements may result in rejection,” and warned, “Sudden closures and embezzlement should be carefully monitored.”

This content was produced with the assistance of AI translation services.