South Korea Doesn’t Believe in Regulating Cryptocurrency

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The South Korean financial regulator recently released a statement that they have no plans to begin regulating cryptocurrency as previously thought. They stated that currencies on the digital network such as bitcoin go beyond their current rules. This watchdog organization stated that their decision is based on the fact that they don’t consider digital currency money.

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This seems more like a public relation stunt than anything, to claim that digital currency is not money, but it ends up doing the opposite of proving that cryptocurrency is not currency. Because of the lack of regulation and no plan to have regulatory measures put in place, South Korea could effectively become a safe haven for those looking to trade cryptocurrency.

The FSS Governor Choe Heung-Sik claimed at a press conference that financial regulators should only play the the role of warning the public of the risks associated with investing, rather than active regulation. He stated that “all we can do is to warn people as we don’t see virtual currencies as actual types of currency, meaning that we cannot step up regulation for now.” He also stated that any regulation of cryptocurrency in the country will only serve to promote the trading of the currency. Given that regulation would help to think that the country thinks of digital currency as an actual form of money. Like previously mentioned, many think that it will do the opposite, and end up promoting trading in the country anyway.

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Many countries have taken the route of regulating cryptocurrency, but rather than actually stop the trading of the currency in those countries, those who trade digital money moved to places where it was more widely accepted. With the widening market on cryptocurrency getting larger everyday, it will be interesting to see where it goes throughout the next year.


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