If you’ve been following the crypto industry recently you would have heard the news overnight that the country is considering banning cryptocurrency trading now this came out of the Justice Minister Park Sang-ki’s office where he said that they will be putting forward a bill that would see that the cryptocurrency industry banned in the country.
So here we are, still debating how much this is going to continue affecting cryptocurrency prices, and Bitcoin in particular. Fair to say, once South Korea decides what the hell they’re going to do, then the better off everyone will be. Only time will tell if they ban crypto trading or not. For the time being, I’m betting they’re not, or the government is going to have a lot of angry people at their doorstep.
Cryptocurrency Ban still an ‘Option’
The South Korean Prime Minister’s office said that they were definitely considering banning cryptocurrency. But it’s not their only option. It’s just simply one option the government is looking at to try and regulate the industry at the moment. Like any government, they’re trying to figure out how best to react to the onslaught of interest in cryptocurrencies, and albeit a closer look at how to regulate it to safeguard against fraud.
The government has massive fears around the speculative nature of it, wondering why so much of the younger population is investing their money into cryptocurrencies when, but I think we all know why people are trading cryptos: lots and lots of money to be made quickly.
Regulators around the world are still debating how to address risks posed by cryptocurrencies, as bitcoin, the world’s most popular virtual currency, soared more than 1,700 percent last year. Via Reuters
I know why the government is so worried about it. South Korea and other governments are asking questions like, what if Bitcoin crashes, what would it do to the economy; what about tax evasion issues, and so on. Yes, there’s a whole bunch of things that the government is worried about.
Bitcoin is volatile over South Korean News
As the verge points out, the spotlight on cryptocurrencies from the regulatory industries is causing quite a stir in the crypto community. But, as we will see, I don’t think it will put too much hamper on the activity.
This global movement toward harsher regulation has been cited as a major cause of the exodus of value that has gripped cryptocurrencies in the past week. It would also potentially account for BitConnect’s collapse, which came after multiple cease and desist letters from securities watchdogs in Texas and North Carolina. Via The Verge.
So, when you hear someone say the South Korean government is banning it, they’re not. It’s just an option that they’re considering and even then it looks like it’s going to be an unlikely one. Further, I tend to think regulation will help cryptocurrencies go mainstream. What I’m more suspect is why governments care so much for their citizen all of a sudden. It would make me warm and fuzzy, if not for suspicion that the banking lobbyist is behind it. 🙂
Images credit yahoo.com, indepedent.uk.co