08.05.202613:04 Forex Analysis & Reviews: South Korea tightens oversight of cryptocurrencies

Meanwhile, Bitcoin and Ethereum are showing no signs of life, clearly wary of mixed US labor market data and developments in the Middle East, South Korea announced it is strengthening supervision of cross-border crypto operations, introducing stricter controls under the Ministry of Finance. The new regulatory requirements will apply to all cryptocurrency exchanges, custodial services, and other firms involved in the international buying, selling, or swapping of digital assets.

The measure responds to South Korea's sizable share of global crypto trading volume, estimated at around 30%. Notably, most transactions in the country involve altcoins — 85% — rather than the larger cryptocurrencies such as Bitcoin or Ethereum. Managing this growing, dynamic market has become a priority for the country's financial regulators.

The statement says the expanded Ministry of Finance oversight is aimed at preventing illicit activity such as money money laundering and tax evasion and at ensuring financial stability. Tougher transparency and accountability requirements for international crypto transfers are intended to minimize the risks associated with cross-border movements of digital assets.

Crypto exchanges and custodial services conducting international operations will have to meet new standards, which will likely include enhanced KYC/AML procedures and stricter reporting to regulators.

Trading recommendations:

Regarding Bitcoin's technical picture, buyers are currently targeting a return to $80,100, which opens a direct route to $81,700, and from there to $83,600. The most distant target is the high around $85,600; breaching that level would signal attempts to return to a bull market. In case of a decline, I expect buyers at $72,200. A fall below that area could quickly push BTC toward $76,300. The furthest target there would be around $74,700.

Regarding Ethereum's technical picture, a clear consolidation above $2,290 opens a direct route to $2,328. The most distant target is the high near $2,387; breaching that would indicate strengthening bullish sentiment and a return of buyer interest. In case of a decline, I expect buyers at $2,225. A return of the instrument below that area could quickly send ETH toward $2,162. The furthest target there would be around $2,114.

What we see on the chart:

- Red lines indicate support and resistance levels where either a price slowdown or active growth is expected;

- Green lines indicate the 50-day moving average;

- Blue lines indicate the 100-day moving average;

- Light green lines indicate the 200-day moving average.

A crossover, or a price test of moving averages, typically either halts the move or sparks fresh market momentum.