Last year we had China place a ban on all Cryptocurrency Exchanges, trading volume did drop dramatically however it’s affect on the Bitcoin economy as a whole was minimal, in fact just month after Bitcoins value was more than triple it pre-China ban valuation.
South Korea have been dancing around the subject for sometime on what to do about Cryptocurrencies, well it seems a decision has finally been made and they intend to go down the same route as China, a ban on all Cryptocurrency Exchanges.
South Korea attorney general Park Sang-Ki said:
“The South Korean Ministry of Justice is considering the closure of cryptocurrency trading to bring cryptocurrency mania and speculation under control for investor protection.”
The Justice minister stated that Cryptocurrencies were causing the Government “Great concern”, following this news we saw Bitcoins price drop around 7%, which is a very healthy response, far healthier than the drop we saw following the China ban news last year.
South Korea’s Finance Minister Refuses to Support Cryptocurrency Trading Ban
The South Korean Ministry of Strategy and Finance do not “share the same viewpoint” according to Jospeph Young who said in a Tweet:
Another Tweet from Joseph has also stated that the South Korean Government have reaffirmed that NO SUCH BAN is currently in place:
It will be interesting to see what happens over the coming days and weeks, as in the case with the China ban proposal, South Korea seem to be dragging out the whole process as long as possible. This proposed trading ban has not been enforced, it is not definitely going to happen and we have no timeline to work with.
Police Raid Several Prominent Exchanges
South Korean authorities have made raids on some of South Korea’s most prominent Cryptocurrency exchanges, Bithumb and Coinone have both been visited by authorities and are under intense investigation according to Reuters:
The nation’s largest cryptocurrency exchanges such as Coinone and Bithumb were raided by police and tax agencies this week for alleged tax evasion. The raids follow moves by the finance ministry to identify ways to tax the market that has become as big as the nation’s small-cap Kosdaq index in terms of daily trading volume.
“We were asked by the tax officials to disclose paperwork,” an official at Bithumb said, requesting anonymity due to the sensitivity of the issue.
Those Who do Not Embrace Will Be Crushed
As we saw with China a national ban on Cryptocurrency Trading does nothing to diminish the Cryptocurrency space, in fact since China did enforce an exchange ban on Cryptocurrencies we have seen astronomical increases in the entire space, the total market capital of the Crypto space has increased 5x since China’s so called death blow to Crypto.
If South Korea go down the same route as China and place a ban on Cryptocurrency trading then we will just see another shift in the dynamics of where money is flowing into the space. The intelligent response to a threat so large is to embrace it and adapt. You cannot compete with a new, better and socially empowering era of economics – it exists and therefore it will always exist.
Countries which try to understand Cryptocurrency and allow easier, if regulated access to the space will be rewarded by being a part of a potentially multi-trillion dollar space.