Friday, January 19, 2018
South Korea considers shutting down domestic cryptocurrency exchanges
The article stated that South Korea is trying to maintain a clear currency market by shutting down local virtual currency exchanges like bitcoin. The government is concerned with the risks and uncertainties brought by those virtual currencies. The opinions on cryptocurrency tradings are divided in the government and raised huge reactions among market due to the long-term impact on the form of future currencies.
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5 comments:
I wonder if other governments in the world such as the U.S will follow in South Korea's footsteps now and attempt to shut down cryptocurrencies as well. Bitcoins are doing incredibly well on the U.S market although I am curious if they could have adverse effects on our nation's market in the future if we do not institute higher regulations. Is South Korea feeling affects of this policy yet on their economy?
Follow up article I just saw today saying that Nasdaq CEO engaged a bitcoin exchange and is launching a bitcoin futures contract.While South Korea government feel threatened by the virtual currencies, European countries think cryptocurrencies are viable and will become global trading instruments. Since European countries have already become non-cash, virtual currencies are promising in the future.
http://www.foxbusiness.com/markets/2018/01/23/nasdaq-exploring-bitcoin-futures-but-sees-more-potential-in-blockchain-ceo-says.html
I definitely agree with the South Korean government in this situation. There is definitely a large amount of uncertainty when it comes to cryptocurrencies. Because of this, I feel that governments are going to have to find a way to regulate these cryptocurrencies in order to uphold the value of their respective currencies.
I think this is the first domino to fall in governments taking action against cryptocurrencies. Governments love control and knowing what their citizens are doing, but cryptocurrencies allow consumers to engage in black market transactions that cannot be tracked by the government. Cryptocurrencies are doing well in the US, but it's only a matter of time before the government steps in and pops the bubble.
The South Korean has been working on legislation to regulate the crypto markets for quite some time. It wasn't until a recent article, "fake news" if you will, was released by CNN announcing a complete shutdown of crypto exchanges that this issue was launched into the spotlight. South Korea is merely working to regulate a market in which scam exchanges regularly crop up. Fake accounts are often made on a multitude of exchanges, and people who should not be investing in crypto (people under 18 and people without any financial stability) are entering a volatile market and losing a lot of money for a bunch of different reasons. One thing is for sure, this a logical step toward legitimizing cryptocurrency use as the world further adopts crypto in daily life. Cryptocurrency will not be completely shut down but regulated in South Korean markets.
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