South Korea, a country known for its technological advancements and high-speed internet, is now considering a significant move in the world of digital currencies. The South Korean government is contemplating a ban on credit card transactions for cryptocurrencies, a move that could have far-reaching implications for the global crypto market.

The Current State of Cryptocurrency in South Korea

South Korea is one of the world’s largest markets for cryptocurrency trading. According to data from CoinMarketCap, the country accounts for a significant portion of the global trading volume of cryptocurrencies like Bitcoin and Ethereum. The popularity of cryptocurrencies in South Korea is largely due to the country’s tech-savvy population and the high level of internet penetration.

Why South Korea is Considering a Ban

The South Korean government’s consideration of a ban on credit card transactions for cryptocurrencies comes amidst growing concerns about the risks associated with cryptocurrency trading. These concerns include potential financial instability, the risk of fraud, and the use of cryptocurrencies for illegal activities.

• Financial Instability: The volatile nature of cryptocurrencies can lead to significant financial losses. This is particularly concerning for credit card users, who may be tempted to borrow money to invest in cryptocurrencies, potentially leading to a cycle of debt.
• Fraud: The anonymity of cryptocurrency transactions makes them a prime target for fraudsters. There have been numerous cases worldwide of cryptocurrency scams, leading to significant financial losses for investors.
• Illegal Activities: Cryptocurrencies can be used for illegal activities, such as money laundering and financing terrorism, due to their anonymous nature.

Implications of the Potential Ban

If South Korea does implement a ban on credit card transactions for cryptocurrencies, it could have significant implications for the global crypto market. South Korea is a major player in the crypto market, and a ban could lead to a decrease in global trading volumes.

Furthermore, a ban could also impact the perception of cryptocurrencies worldwide. South Korea is seen as a leader in technology and innovation, and its actions could influence other countries’ policies towards cryptocurrencies.

Case Study: China’s Cryptocurrency Crackdown

China, another major player in the cryptocurrency market, has already taken steps to crack down on cryptocurrency trading. In 2017, China banned initial coin offerings (ICOs) and shut down local cryptocurrency exchanges. This led to a significant drop in global cryptocurrency prices and served as a stark reminder of the influence that regulatory decisions in one country can have on the global crypto market.

Conclusion

The South Korean government’s consideration of a ban on credit card transactions for cryptocurrencies is a significant development in the world of digital currencies. While the potential ban is driven by legitimate concerns about financial instability, fraud, and illegal activities, it could have far-reaching implications for the global crypto market. As the world continues to grapple with the challenges and opportunities presented by cryptocurrencies, the actions of countries like South Korea will undoubtedly play a crucial role in shaping the future of digital currencies.

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The Securities and Exchange Commission (SEC) is facing criticism from the United States Chamber of Commerce over its lack of clarity regarding which digital assets are securities under federal law. This issue has “immense implications for every person involved in the $1 trillion digital-asset economy,” a court filing by the Chamber states.

According to the filing, the SEC has refused to engage in any systematic process or rulemaking to explain what its claimed authority means, instead offering one-off enforcement actions and public speeches. This has created regulatory uncertainty and destabilized the regulatory environment for digital assets.

In July 2022, Coinbase petitioned the SEC to initiate a rulemaking regarding digital-asset securities. It urged the Commission to answer basic questions such as “which digital assets are securities?” More than 1,700 commenters echoed Coinbase’s call, but the SEC expressed no interest in addressing Coinbase’s request, according to the Chamber. Coinbase then pursued a lawsuit against the SEC in order to compel the regulator into action, which is where the filing by the U.S. Chamber of Commerce comes from.

The SEC’s Chairman has asserted that the securities laws are unambiguous as applied to blockchain-based digital assets. Despite constructively denying Coinbase’s petition, the SEC has refused to memorialize its decision in a formal response.

According to the Chamber, the SEC’s lack of clarity has caused economic harm to both Coinbase and the broader business community. The uncertainty deters productive conduct and stifles innovation and undermines broader American economic and strategic interests. Continued uncertainty also has implications for the nation’s geopolitical interests and the continued primacy of the dollar, given the increasing relevance of digital assets to international monetary policy.

The SEC’s refusal to engage in rulemaking or respond to Coinbase’s rulemaking petition has destabilized the regulatory environment for digital assets, the Chamber states.

“Agencies ordinarily provide regulatory clarity by promulgating rules of general applicability,” the filing says. “This preference for rulemaking has important benefits: It forces agencies to put to paper their regulatory plans, and it provides for fixed, prospective effective dates that ensure parties can bring their conduct into conformance with the law rather than be held liable later for violating duties they did not know existed.”

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Bitcoin’s (BTC) volatility has shrunk further this week and it is on track to form an inside-bar pattern on the weekly chart. Although the bulls are finding it difficult to clear the overhead hurdle in the $30,000 to $31,000 zone, a positive sign is that they have not ceded ground to the bears.

It is not only cryptocurrencies, even the S&P 500 Index has been oscillating inside a range for the past few days. This indicates that markets are awaiting a trigger to start the next directional move.

While the short-term price action is uncertain, analysts are getting bullish for the long term. Trader Titan of Crypto highlighted a potential signal on the Bollinger Bands monthly chart, which projects a rally to $63,500 in about a year.

While most major cryptocurrencies gave up some ground over the past week there are still some pockets of strength. Let’s analyze the charts of five cryptocurrencies that may turn up in the short term.

Bitcoin price analysis

Bitcoin turned down sharply from the resistance line of the symmetrical triangle pattern on May 6, indicating that the bears are not willing to let the bulls through. A minor positive is that the bulls have been buying the dips to the support line of the triangle as seen from the long tail on the day’s candlestick.

The flattish 20-day exponential moving average ($28,819) and the relative strength index (RSI) near the midpoint do not signal a clear advantage either to the bulls or the bears.

If the price breaks below the triangle, it will suggest that bears are trying to seize control. The BTC/USDT pair may first fall to $26,942 and then to $25,250.

On the other hand, a break and close above the triangle will suggest that the bulls have absorbed the supply. That may start a rally to $32,400 where the bears are again expected to mount a strong defense.

Buyers nudged the price above the triangle but the long wick on the candlestick shows that the breakout turned out to be a bull trap in the near term. BTC price turned down sharply and plunged to the support line of the triangle.

The bounce off this level has reached the moving averages, which is a key short-term level to watch out for. If Bitcoin’s price turns down from the current level, it will raise the chances of a break below the support line.

Contrarily, if buyers kick the price above the moving averages, the pair may rise to the resistance line. The bulls will have to drive and sustain the price above this level to start an up-move.

Ether price analysis

Ether (ETH) faced a strong rejection above the psychological resistance at $2,000 on May 7. This indicates that the bears have not given up and they continue to protect the overhead resistance levels.

The 20-day EMA ($1,903) has flattened out and the RSI is near the midpoint, indicating that the ETH/USDT pair may remain range-bound in the near term. The boundaries of the range could be between $2,000 and $1,785.

A consolidation just below the local high is a positive sign. It shows that the bulls are in no hurry to book profits, increasing the possibility of a break above $2,200.

On the contrary, if the price plunges below $1,785, it will suggest that bears have seized control. That could start a fall to $1,619.

The 4-hour chart shows that the bears could not build upon the break below the 50-simple moving average. This shows that the selling pressure reduces at lower levels. The bulls are trying to stage a recovery by sustaining the price above the 20-EMA. If they can pull it off, the pair will again try to retest the crucial resistance at $2,000.

On the contrary, if ETH price turns down from the current level and breaks below the 50-SMA, it will suggest that the bears are in command. That could sink the pair to the support line.

Monero price analysis

Monero (XMR) is trying to stay above the moving averages, indicating that the bulls are attempting a comeback.

The flattish 20-day EMA ($156) and the RSI just above the midpoint indicate a balance between supply and demand. If buyers thrust XMR price above the neckline of the inverse head and shoulders pattern, the advantage will tilt in their favor.

The XMR/USDT pair may then start a new up-move. There is a minor resistance at $181 but if that is crossed, the pair may reach $187.

Instead, if the price turns down from the current level or the neckline, it will suggest that the bears remain active at higher levels. The sellers will then try to yank the price below the $149-support, opening the door for a decline to $130.

The 4-hour chart shows that the price rebounded off the 50-SMA but the bulls could not pierce the resistance line. This shows that the bears are selling on rallies. If the price snaps back from the 20-EMA, it will suggest that the sentiment is turning positive and traders are buying on dips.

The bulls will then make another attempt to clear the overhead hurdle. If they manage to do that, the pair could first rise to $162 and then to $164.

Alternatively, if the price turns down and breaks below the 50-SMA, it will suggest that bears are in control. That will increase the likelihood of a retest of the support line.

Related: The Ethereum Foundation just sold $30M in Ether — But will ETH price fall this time?

OKB price analysis

OKB (OKB) is trading inside a large symmetrical triangle pattern. Generally, in this setup, traders buy near the support line and sell near the resistance.

The bears are trying to maintain OKB price below the 50-day SMA ($45.57) while the bulls are attempting to reclaim the level. If the price turns up from the current level or rebounds off the support line, it will suggest demand at lower levels.

If buyers shove the price above the 20-day EMA ($46.87), it will suggest that the OKB/USDT pair may prolong its stay inside the triangle for some more time.

Contrary to this assumption, if bears sink the price below the triangle, it will suggest that the setup has behaved as a reversal pattern. That could start a new downtrend which is likely to pull the pair to $37.

The 4-hour chart shows that the bulls are trying to defend the horizontal support near $44.35 but they have not been able to propel the price above the moving averages. This suggests that every minor relief rally is being sold into. If the price turns down from the current level and plummets below $44.35, the pair may slump to $41.70.

Conversely, if the price rises above the moving averages, it will signal accumulation at lower levels. The pair could first rise to $49.50 and thereafter attempt a rally to $53.

Rocket Pool price analysis

Rocket Pool (RPL) is looking strong as it is trading above the moving averages. This shows that the bulls are buying on dips.

The bulls will have to propel the price above the overhead resistance at $53.45 to signal that the corrective phase may be over. The RPL/USDT pair may thereafter attempt a rally to $58.

Another possibility is that RPL price rises from the 20-day EMA ($48.36) but turns down from $53.45. That will indicate a possible range-bound action between the 50-day SMA ($46.13) and $53.45 for some time.

A break and close below the 50-day SMA will be the first indication that the bears are in command. That will open the doors for a potential decline to $37.

The 4-hour chart shows that the bears are trying to sustain the price below the 20-EMA while the bulls are trying to push the price above it. If buyers succeed, the pair may rise to the downtrend line. This is the key short-term level to watch for. If this resistance is overcome, the pair may rally to $53.45.

Contrarily, if the price turns down from the current level and breaks below the 50-SMA, the price risks dropping  to the support line. The bulls are likely to defend this level fiercely.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.