South Korea is one of the world’s technologically advanced countries. And when it comes to digital currency, South Korea has solidified its place as one of the leading players in the crypto market.
The country is experiencing its second wave of a cryptocurrency boom and people are not wasting any time in jumping in on the trend. And if you see yourself on this career path, this is a very good time to explore and start an internship in one of the many cryptocurrency exchange services in South Korea.
South Korea has always been quick in adapting and advancing in the latest technology. And since the advent of cryptocurrency, the country has been at the forefront of the game, with a population that readily embraces new technology and a government that offers support through laws and regulations.
Despite the numerous hacking scandals that exchange services in South Korea have experienced, the country’s interest in digital currency hasn’t seemed to diminish in the least and its popularity seems to be increasing. There are many reasons why South Korea is a great place to start a cryptocurrency internship. But the three main reasons can be credited to micropayments, the economy and politics.
Firstly, the population’s familiarity with micropayment grants the country a huge advantage in the digital currency market. Micropayments are small transactions or payments made online for less than a dollar. They are mainly used for online gaming and other internet purchases. And with advancements made in technology, the popularity of micropayments has also seen an increase in exposure and inclusion.
An example of this is Hangame, a Korean gaming company. Back when online gaming was mostly free, the company had revenues of $30,000 per day on micropayments of 50 cents each in 2001. Although the country is yet to see such similar revenues produced from cryptocurrency, this outcome doesn't seem so far-fetched now that government regulations are being put in place.
Secondly, the economic conditions in the country are not too favourable to the younger generation. While the Korean economy is generally a prosperous one, there is still a high youth unemployment rate. In June 2020, the unemployment rate was 11%, dropping to 8.2% in December 2020. Although the government offered incentives to small businesses to hire young workers, the youth in South Korea have turned to cryptocurrencies as a more lucrative option for their future.
Figure 1. Bitcoin (Source: Pexels)
Third, the uncertain relationship between North and South Korea has increased the use of cryptocurrency in the country. Earlier this year, North Korea developed a submarine-launched ballistic missile and this declaration made foreign investors highly reluctant to invest in businesses in South Korea. But with the rise in the use of cryptocurrency in the country, investors are more likely to conduct their business in South Korea, given its characteristic of decentralization.
With foreign investors setting up their businesses in South Korea, starting an internship in this field will give you a head-start in the business and starting with AIP will give you a diverse international experience in the crypto market. You will also get to experience the rich culture and tradition of the country.
There has been a growth of cryptocurrency exchange services in South Korea since 2013. Some of the most used cryptocurrency services are Coinplug, Korbit, Coinone, UpBit and Bithumb. But out of these exchange services, Bithumb has emerged as the country’s major cryptocurrency exchange.
Founded in 2014, Bithumb has grown into the country’s number one go-to platform for exchanging virtual assets. Their aim and mission in the industry are to lead the future into a digital financial world.
In 2020, the South Korean National Assembly passed new legislation that would legalize the regulation of cryptocurrency. This legislation also provided a framework of how this regulation would look like. This means that digital currency exchange services are able to effectively oversee the cryptocurrency industry and develop rules to avoid money laundering in the process.
Since the government implemented these regulations on digital currency in the country, Bithumb has been on the front page of a number of scandals. The latest one took place in September 2020, when Bithumb’s headquarters was raided in Gangnam-gu, Seoul. The raid was related to an already going investigation regarding an investment fraud when issuing BXA, the exchange's native token. This particular investment fraud is believed to have cost millions of dollars.
Bithumb is an example of what happens when digital currency is not properly regulated and investments are blindly entrusted in exchange services. The South Korean government is proactive in the way they regulate and continue to be cautious of the cryptocurrency market. Reflecting the government’s opinion, three of the five largest Korean banks also do not conduct any transactions with digital currency with the concern of hacking, data leaks and money laundering.
It is this cautious approach to crypto investment that allows South Korea to become one of the most prosperous countries trading in cryptocurrency. The strict laws and regulations they have around digital currency mean that all transactions will be licit and fair.
Figure 2. Money and Taxes (Source: Pexels)
An example of this is the action taken by the Ministry of Economy and Finance to require crypto investors whose gain exceeds 2.5 million won ($2260) to pay 20% tax from 2022. These legal requirements aim to prevent any illicit money laundering and other illegal activities by using cryptocurrencies.
Digital currency has been around for quite some time now, but with COVID-19 acting as a catalyst, almost all businesses are now shifting to virtual transactions. And South Korea has fully embraced this shift in the financial world.
Moreover, the financial literacy among the public is rapidly increasing which hints at the potential adoption of cryptocurrency in their daily lives. AIP believes in having hands-on experiences in order to build up your skills and techniques.
By doing an internship in South Korea, you will experience the fast-paced environment of the finance industry and be up to date with the current laws and regulations surrounding digital currency. The popularity of virtual currency will not stop any time soon, therefore it is best to start learning about this industry early. An internship is one of the best ways into the industry as you are taught all the tips and tricks of the trade. The knowledge you gain during this experience will benefit you for a long time.
If you want to learn more about the virtual currency market, apply with AIP and get connected with one of the best crypto exchange services in South Korea. Visit our website to learn more about the programs we offer.