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Business & Finance

Millions are Trading but South Korea is Planning to Ban Cryptocurrencies

A lot of countries are busy playing their role in the world of cryptocurrency trading but one Asian country emerged as one of the top markets i.e. South Korea. Ever since then, South Korea has been trying to maintain its position as the third-largest market for Bitcoin trades in the world. South Korea is a small country yet it is able to trade digital currencies at a rate of at least 30% above the prices that are being offered in other countries and this is one of the reasons why digital currency investment has increased in South Korea.

Dr. Garrick Hileman, in an interview, shares his thought about why South Korea is so important for Bitcoin. He states:

Several million South Koreans, especially young people, are actively trading cryptocurrencies, which is a significant percentage of the South Korean population.

With such heavy flow of investment, South Korea is bound to face problems that need timely solutions. The amount of interest Koreans are taking in cryptocurrency is having a detrimental impact on the community as a whole. A number of cases have been reported in which Koreans including students are trying to use this means of making quick money. In order for them to make money they tend to indulge in illegal activities like drug dealing or other types of fraud. A number of suicides have been reported due to cryptocurrency crash. One such suicide was reported on 1st February. A young student committed suicide as he invested a total of $18,500. The government has been warning the youth not to indulge in such activities but the authorities are unable to control it to a full extent. Moreover, policy makers are trying to come up with ways through which they can control such activities. One way of doing this is to ban cryptocurrency.

South Korea in the past has taken a lot of measures to control the use of cryptocurrency. Some of the most obvious ones are:

  1. They imposed a ban on anonymous trading
  2. All minors and government officials are no longer allowed to trade
  3. The exchanges are being taxed in a substantial manner

However, one needs to have a look at the reasons behind the increase of cryptocurrency interest in South Korea. One of the most important reasons behind this is that the rate offered for the digital currencies is 30-40% more than the rate offered in rest of the countries, making many people to invest in South Korea. Furthermore, the rate of unemployment is increasing in South Korea due to which, the people who are not employed anywhere, are finding new ways to make money. The youth unemployment rate in South Korea reached 9.9%, which is a very high figure. Cryptocurrency is one way of making money and earning a living.

Furthermore, regardless of all the benefits, the government of South Korea is planning to ban cryptocurrency mainly because it is creating more problems for the system. The problems are difficult to tackle especially when the investment is increasing on daily basis. Hacking a cryptocurrency account is also very easy and because of this the users are at a constant risk of losing their money. An incident took place earlier this year in Tokyo. Hackers were able to break into a cryptocurrency exchange and they were able to make at least $500 million. The interesting aspect is that Coincheck, the hacked exchange, was able to identify 11 accounts where the stolen coins were stored but they were unable to find out the people who were using those accounts. South Korea is struggling to find solutions that can help them get rid of digital currencies before their citizens face any such or more problems.

However, the citizens of South Korea are not in favor of this decision and they have managed to come up with a petition that needs at least 200,000 signatures. The main claim behind this petition is that the people of South Korea find cryptocurrency as a way to fulfill their dreams and desires. It has become a necessity for the people who are unable to find suitable jobs. The petition requires at least 200,000 signatures and that too, within 30 days.

Hiram Nadeem

Hiram is a teacher and media sciences graduate with focus over finance news. Contributes to BlockPublisher with fintech news and sometimes, her opinions. Email: editor.news@blockpublisher.com

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