|51 percent attack||51 퍼센트 공격|
|accredited investor||적격 투자자|
|Ancestor mining||조상 채굴|
|Best block chain|
|Best header chain|
|Bitcoin Core||비트코인 코어|
|Bitcoin Improvement Proposals|
|Bitcoin Improvement Protocol||비트코인 향상 프로토콜|
|block height||블록 높이|
|BTCC||중국의 4대 거래소|
|BTCtrade||중국의 4대 거래소|
|Child pays for parent|
|Child private key|
|Child public key|
|confirmation number||컨펌 숫자|
|consensus algorithm||합의 알고리즘|
|Customer Due Diligence||고객주의의무|
|Double Spend||이중 지불|
|gas limit||수수료 한계|
|genesis block||제네시스 블록|
|hard cork||하드 포크|
|hash rate||해시 속도|
|Huobi||중국의 4대 거래소|
|hyperledger fabric||하이퍼레저 패브릭|
|mobility token||모빌리티 토큰|
|OKcoin||중국의 4대 거래소|
|PBFT||프랙티컬 비잔틴 장애 허용|
|practical byzantine fault tolerance||프랙티컬 비잔틴 장애 허용|
|Private Key||개인 키|
|Proof of Stake||지분증명|
|reward Blocks-first sync|
|Satoshi Nakamoto||나카모토 사토시|
|SEC||미국증권 거래 위원회|
|Smart contract||스마트 계약|
|Token generating event||토큰생성이벤트|
|utility token||유틸리티 토큰|
|White list||화이트 리스트|
[THIS BLOG IS A DRAFT]
The recent expansion of the crypto-economy has led to an explosive growth of initial coin offerings (ICO) around the world. Some people hail ICOs as the next generation funding mechanism for budding entrepreneurs who are no longer constrained by traditional venture capitals. In 2017 alone, the ICOs around the world raised nearly USD 5.6 billion. (source) The spectacular success of the select ICOs such as those of Ethereum and Telegram has created a huge boom of the ICOs and at the same time a greater competition among the crypto projects to grab the investors’ attention.
Many ICO projects have a sleek website, buzzing SNS campaigns, stunning promotional videos and, last but not least, a white paper. Many people in the crypto-economy would agree that whitepapers are probably the most important factor in the success of any ICO. Most of the contributors, who are buying the coins during the public sale, rely on this single document to make the purchase decision. Therefore, most whitepapers are written with a painstaking care and attention that rival with those for the stock offering documents.
However, this obsession to detail often falls short when it comes to translating the whitepapers. As a professional translator and someone who have read dozens of translated whitepapers, I can say with confidence that many translated whitepapers are simply terrible. In fact, I noticed that whitepapers seem to have the worst translations of all the documents I have seen.
Here is my theory as to why this is the case.
Crypto whitepapers are significantly difficult to translate requiring some knowledge in finance, economics and technology. Many of the terms in the whitepapers are so new that I never heard of them and they do not appear in my dictionary. Even the words that I do know, they are used in a specific sense, for instance, the words like token, hard cap and mining.
Crypto entrepreneurs do not spend enough money on decent translation. I understand cost is an important concern and one should save money whenever one can. But as a native speaker of Korean, I feel my interest in an ICO project plunge when I see countless typos and ridiculous sentences which scream callous carelessness. Of course, the ICOs can simply ignore non-English speakers or have them read the English original, right?
Well, I beg to differ on this.
Figure 1 – Bitcoin Volume by Currency (2017)
sourced from cryptocompare.com
The pie chart above shows that nearly a half of bitcoin are held in the Japanese, South Korean and Vietnamese currencies.
Having a skilled translator will only get you so far as having the direct translation of your document would only result in a literal translation and with no regard for the country’s local language, culture, etiquette, and values.
1) Failing to realize the Importance of Culture
Perhaps the pitfall that a lot of crypto entrepreneurs fall into is that they do not care about the culture of their target audience of investors. The truth is that when an American investor might read and interpret your whitepaper differently from a Korean or a Japanese investor. Even if the Korean investor can read and understand the English texts perfectly, he can nevertheless interpret it differently because of his background and culture. The attitude toward the ICO varies significantly among countries ranging from favorable to hostile. For instance, in South Korea, many conservative media take the stance that ICO is a fraud or money launderers paradise.
To mitigate this it is important to hire the translator that is not only competent linguistically but also culturally. One notable blunder that we can learn from this is when Nike aired their Nike Air Shoe commercial in Middle Eastern countries with the “Air” worded in flames. This caused great controversy as the “Air” looked so similar to the Arabic word for “Allah”. This prompted Nike to reevaluate their marketing strategies and caused them to pull our thousands of shoes from stores costing them millions and having a generally negative public sentiment.
2) Lack of Balance between Translation & Localization
Translation and Localization are two terms that are used interchangeably but bring in several key differences. Translation is simply the literal word for word conversion of English to another language like KOrean, Mandarin, Cantonese and the like.
Localization on the other hand is the more involved process where you adapt with the desired language to effectively convey meaning or connotation towards your target audience. For the case of cryptocurrencies, studies towards both translation and localization provide that when dealing with technical and academic papers, it is better to simply translate the whole document as there is need for accuracy that the source words and target text would match up. For videos and podcasts, it is better to have it localized as by integrating your ideas with the way sentences are formed in the target text, you can further convey your ideas where your target audience can relate to.
3) Not knowing your Audience
Having the best translator/localizers and research won’t do you much good without knowing the target demographic that your cryptocurrency’s whitepaper. It is easy to simply market your cryptocurrency to a wide variety of demographic but just like in Western markets, figuring out how your target market thinks and behaves will bring you further ahead than your competition. Growing markets in Asia are catching up to the Cryptocurrency explosion and this has attracted the attention of young and seasoned investors alike. However, a young cryptocurrency enthusiast thinks differently from a seasoned investor. An enthusiast may view your own your whitepaper and think that your cryptocurrency’s vision will be the one to surpass Bitcoin and further the integration of Blockchain in the future while a season investor may pass up on your whitepaper due to lack of clear data and wordings that would attract them.
4) Values differ from country to country
Dealing with foreign investors for your whitepaper can be a tricky task as each of them value different things. To make it easier for you when doing your business with them, here are some key notes to consider with your future clients: Keeping track of these values will enable you to have smoother business transaction with your clients and with your expertly done research, bring in more loyal supporters for your cryptocurrency.
5) Spending too much on writing whitepaper while too little on Translation
Many whitepapers are written with the extreme care and plastered with high quality graphics and illustrations. Often, the same amount of care and attention is not paid to the translation despite the fact that the non English speaking audience will only see the translated whitepaper only. With several hundred ICO projects competing for the investors’ money, the poorly translated whitepapers can ruin the chance of making a favorable impression on the potential investors.
A common sense question is often raised when reading a poorly translated whitepaper- if this ICO has no money to even produce a decent translation, will it even survive?
All in all, translating your cryptocurrency’s whitepaper can be a big and grueling tasks, with the proper research towards your target country’s culture, values, demographic, and balancing translation vs localization, you’ll be able to reach as many investors as possible, keeping your costs down, and learning to integrate your whitepaper with their own culture.
For business/corporate bank accounts, it is far harder.
You will need:
1) business registration certificate from the Korean government (사업자등록증),
2) Copy of corporation register (법인등기부등본)
3) List of shareholders of the corporation (주주명부)
4) Official proof of corporate seal (법인인감증명서)
5) Original corporate seal/duplicate corporate seal (법인인감, 사용인감)
6) Government issued ID for the representative director of the corporation (대표자신분증)
A. (For agent) Government issued ID for the agent
B. Power-of-attorney for the agent
*If it is a newly created business/corporation, you need a lease agreement showing that you are renting a building or place of business or a letter/certifying document from the government startup incubator that shows that you are launching a business
In addition, since last year the Korean banks are required to ask you to submit additional proof below that you are not a money launderer or a shell company by submitting following:
Supply agreement, tax invoice, value added tax filings, general tax filings, company’s balance sheet, electricity and gas bills, etc. (This is similar to what PayPal does to foreign account holders. I have a PayPal US account but it is frozen indefinitely because I did not submit them electricity/gas bills. The banks are penalized if one of their bank accounts found to be used in money laundry purposes.)
The banker said, unlike the individual/personal bank account, opening business accounts go through the rigorous, vetting process. The banker will make a on-site visit to the office/place of the business to see if it is just a shell company or a real one. Each bank branch has their “territory” and if the business is located in somewhere else outside their vicinity, they will kindly refer to the other branch that is closer to your business.
The banker added that even if you submit everything required, the bank can still refuse to open an account at their sole discretion. Note that the Korean banks interest rates are only 1.25~1.5% so they aren’t so eager to attract deposits.
Lastly, the banks do not and won’t answer questions regarding how to obtain the documents above. (How to get Korean tax IDs etc.)
[The Legal Column] Legally up to $ 50,000 a year … Above it is effectively illegal
January 12, 2018
The so-called ‘Kimchi premium’ exists on the prices of crypto-currencies in South Korean cryptoexchanges. The premium is nearly 30-40% above the prices in the non-Korean cryptoexchanges because of the relatively high demands in South Korea.
Is it illegal or illegal to make money from ‘risk-free arbitrage trading’ (arbitrage), which is buying the cheaper cryptocurrencies from overseas and sell them at the Korean market at higher prices, by taking advantage of the price difference?
The short answer is that it is legal up to 50,000 USD per person annually.
Buying cryptocurrencies outside South Korea by foreign currencies, for instance, US dollars, is considered “capital transactions”(자본거래) under the Korean Foreign Exchange Transactions Act(외국환거래법) By default, the expenditure document should be submitted to the Ministry of Strategy and Finance (기획재정부) or the Bank pursuant to the Enforcement Decree.
1) Under 50K USD
However, according to the public notice (고시) by the Ministry of Strategy and Finance, there is no need to submit documents or report to overseas remittances if it is less than US $ 50,000 per person per year. Therefore, if you can take advantage of the fluctuation in transaction time and price, it is possible to freely transfer overseas to purchase cryptocurrencies to $ 50,000 per person per year.
2) Over 50K USD
The problem is that you want to buy more than $ 50,000 in cryptocurrency from non-Korean exchanges. In this case, the current law should provide the bank with data that can prove the reason for the legitimate remittance, such as overseas real estate investment, overseas corporate investment.
(2) Bank’s refusal to accept the documents
However, financial institutions, including the Ministry of Strategy and Finance and the banks that handle the transaction of foreign currencies, have refuse to accept the documents at together if the government’s regulations on cryptocurrency have recently been announced. In other words, the legal process would mean that one cannot buy virtual currencies with more than $ 50,000 per year from overseas exchanges.
“We cannot ascertain that there was an actual transaction due to the anonymous nature of the cryptocurrency,” an official of the accounting department said. “The bank will not accept a transfer of more than $ 50,000 due to the cryptocurrency purchase.”
If financial transactions are made without a license, they could face up to one year in jail or fines of up to 100 million won in return for cash. If the bill is rejected or the ministry makes a recommendation to change the transaction, a fine of up to 30 million won can be imposed, in addition to criminal penalties.
Claims have been raised that regulations by the authorities on cryptocurrency, such as Bitcoin, might boost their value.
The recent report, released on 8th by Moon Hong-cheol, a researcher of DB Financial Investment, stated “many argue that cryptocurrency has no intrinsic value and some even say it is a fraud.” However, the researcher insisted, “Cryptocurrency can have some value despite such criticism”
For the reason of such prediction, he cited, “Cryptocurrency can secure trust by network distributed ledgers and it is impossible to evaporate due to the technology itself.”
Research Moon argued that the push for regulations by the government is providing a probability of an uncessary increase in the value of cryptocurrency.
He said, “It is unlikely that the criminalization of cryptocurrencies will result in substantial effects. On the contrary, it will boosth their value by reinforcing scarcity and creating demands for exit”
“Central banks and governments would never give up their authority on printing own currencies and control of them, therefore, they will definitely make cryptocurrencies illegal,” added him. He also explained “the push for cyptocurrency regulation by the central bank is providing a probability of an increase in the value of cryptocurrencies, which will go beyond a certain level.”
“Criminalization of cyptocurrency will not be limited to simply banning the use in reality. Rather it will become a comprehensive ban on exchange into convetional currencies used in countries or possesuib of the cryptocurrencies” explained he. “However, banning such transaction and possetion of it would not get rid of its value.”
In addition, he puts, “Unless all countries ban the transactions at the same time, it would be possible to convert cyptocurrencies into conventional currencies by converting them into currencies of other countires which do not ban such changes, and then convert them back into Korean currency. That is one of the important reasons why cryptocurrency will stay here for good.”
On the other hand, Resercher Moon predicted, “Each governement and central bank around the world will create Sovereign Cryptocurrency, which refers to a cryptocurrency controlled by the authorities, and it will boost the effectiveness of monetary policy in an era of zero-interest rates and prevent tax evasion and other criminal activities in the far distant future.”
He also added, “The currenty fenzy over cryptocurrencies might help to boost public understanding into cryptocurrency, laying the foundation for smooth introduction of Sovereign Cryptocurrency in the future.
However,”the biggest enemy of cryptocurrencies is coming not from the outside, but within it” and “new cryptocurrencies will draw attention, boosting prices, but in the end, increases in supply will damages scarcity, posing the risk to the cryptocurrencies as a result” he predicted.
As of January 1 2018, the lowest possible is using “Citibank® Global Transfers.” It is completely free but you need a Citibank account in South Korea AND a Citibank account in America. Citibanks are not very common in South Korea so you have to find a physical branch and create an account. Opening a bank account has become quite tough in Korea recently due to many criminals using bank accounts for money laundering and fraud.
If you are using other Korean banks, here are the fees for a few of them. The fees vary depending on the amount.
1. KAKAO BANK (Internet-only bank)
Under $5,000: 5,000 KRW (about $4.5)
Over $5,000: 10,000 KRW (about $9)
2. WOORI BANK
Under $500: 5,000 KRW (about $4.5)
Under $2,000: 10,000 KRW (about $9)
Under $5,000: 15,000 KRW (about $13.4)
Under $20,000: 20,000 KRW (about $18)
Over $20,000: 25,000 KRW (about $22.4)
Not only you need the identifications but need to pass the banker’s scrutiny that you are not a money laundering risk. The banks can differ on how stringent they apply the test but they could ask your job, how much money you make per year and the ID back in America. If you are super famous like Ivanka Trump, it would be much easier but if you are not well known, the bank will likely refuse.
If you are looking at other banks which could transfer money to the U.S., you can refer to this list below. SWIFT Code is like a phone number for banks which allow to receive international transfers (like receiving a phone call.)
Table A: List of Korean Commercial Banks with SWIFT Code
|English Name||Korean Name Bankcode / SWIFT CODE|
|Kyungnam Bank||경남은행 039 / KYNAKR22XXX|
|Kwangju Bank||광주은행 034 / KWABKRSE|
|Kookmin Bank||국민은행 004 / CZNBKRSE|
|IBK||기업은행 003 / IBKOKRSE|
|NH Bank||농협은행 011 / NACFKRSEXXX|
|Daegu Bank||대구은행 031 / DAEBKR22|
|Busan Bank||부산은행 032 / PUSBKR2P|
|Korea Development Bank||산업은행 002 / KODBKRSE|
|Mutual Savings Bank||상호저축은행 050 / –|
|Saemaeul Credit Units||새마을금고 045 / –|
|Suhyup||수협은행 007 / NFFCKRSE|
|Citibank||씨티은행 027 / CITIKRSX|
|Shinhan Bank||신한은행 088 / SHBKKRSE|
|NACUFOK||신협은행 048 / –|
|Korea Exchange Bank||외환은행 005 / KEOXKRSE|
|Woori Bank||우리은행 020 / HVBKKRSEXXX|
|Post Office Bank||우체국은행 071 / SHBKKRSEPO|
|Jeonbuk Bank||전북은행 037 / JEONKRSE|
|Jeju Bank||제주은행 035 / JJBKKR22|
|Hana Bank||하나은행 081 / HNBNKRSE|
|SC First Bank||SC제일은행 023 / SCBLKRSE|
South Korea has a capital outflow rule that requires approval for money over 50K in US dollars for individuals.
A. Under $50,000 per year
You can send to the U.S. without additional documentation/proof. (Source)
B. Over $50,000 per year
You must submit documentation showing how you obtained the money. (It is called, “취득경위 입증서류 or “Documentary Proof of How the Money Originated”) The Korean regulators want to know why you are sending the money and where you got the money from. If you have necessary documentation, there is no legal maximum really.
Note that South Korea is an export driven country that is wary of sudden outflow of foreign currency which has caused economic damages before. The Korean government has traditionally been quite strict about taking money of country.
CoinOne, the third largest coin exchange in Korea, Coin One is under investigation for assisting gambling which is illegal in South Korea.
The cyber criminal investigation unit of the southern provincial police department said on the 9th that it is investigating coin source officials on charges of violating laws on capital market and financial investment business and opening gambling.
Coin members are accused of providing members with a chance to gamble with passwords through ‘margin trading’ services. Margin trading is a way for members to predict the market price after a maximum of one week and to choose the number of short selling or short selling, and then lose or win money according to the result. Police believe this is similar to gambling.
Police have launched an investigation last year and are looking into members who have recently suffered money damage from coin-to-money transactions as a reference. Coin won the deal on March 18 when the police started an investigation.
On the other hand, Coin won denied the allegations of police being able to view margin trading services as gambling.
On October 10, Koin won the “Legal Service” before the commencement of the margin trading service, carefully examined whether the service was legitimate, and provided the service after receiving a legal review statement confirming that the service was not illegal “He said.
“Margin trading in cryptographic currency trading is the act of depositing margins corresponding to a certain percentage of the proceeds of the transaction and borrowing necessary funds or stocks to trade the bonds. It means borrowing money from the currency, “he said.
“The margins of margin trading at this time mean margins that are not commonly known as profits or profits, but margins (deposits),” he said. “It is unlikely to be legally recognized that the illegal gambling establishment, “He said.
On the other hand, Coin One plans to protect all members who have been requested to attend the investigation by appointing a lawyer after confirming their intention.
January 9th 2018
The Bank of Korea (BoK), the central bank of South Korea, recently held its first virtual currency research task force conference. BoK wants to analyze the impact of the explosive growth of crypto on the Korean payment system as well as the financial system at large. BoK views the crypto can affect monetary policy and financial stability for the country. The governor of BoK said last month that, “I am focusing on the effects of virtual money on the monetary policy, payment system and financial stability of the central bank.”
The South Korean government is about to amend the Act on the Regulation of Conducting Fund-Raising Business Without Permission (類似受信行爲의 規制에 관한 法律 or the “Act”) to cover cryptocurrency transactions such as Bitcoins and Ethereum. The Act is used to prohibit unauthorized, unregulated financial businesses. According to the draft bill presented to the lawmakers, the new legal requirements that affect the exchanges are:
1. The customers’ funds must be segregated, i.e. having separate deposits for customers’ assets.
2. Crypto-exchanges must thoroughly inform the customers of the risks associated with investing in crypto-currencies.
3. The exchanges must verify customers’ actual names.
4. An adequate anti-money laundering system must be implemented.
5. An asset protection system such as dispersion of cryptographic keys is needed.
6. They must increase transparency by disclosing transaction details to the public.
Currently, the FSC, the Korean financial regulator does not view cryptocurrencies as a financial instrument but unauthorized fundraising, it recognizes that they are already being traded around the world.
Financial authorities are also going to prepare guidelines for preventing money laundering with South Korean banks and they are going to look into ways of limiting trade limits for each person. Financial Services Commission decided to prepare ‘guidelines for preventing money laundering related to virtual currency’ sometime during January. It decided to set up trade limits for each person after carefully analyzing suspicious transactions and coming up with results from its inspection.