Bitcoin craze continues despite government regulation

March 6, 2020

2017 has been an amazing year for those who
got in early on cryptocurrencies. Many Koreans have. This country is the world’s third biggest
market,… all the more reasons for the government concerned about a bubble to step in. Kim Hyesung dissect the plans to get things
under control and the challenges ahead. Bitcoin has surged more than 15 fold in value
since the start of the year. Trading the virtual currency has become so
popular in South Korea that on any given day the country accounts for more than one fifth
of the global bitcoin trade, and is the world’s third largest market in trading the virtual
currency. (standup): mark
“More than one million people in the country are believed to hold at least some Bitcoin,
equivalent to one out of every 50 citizens. And concerns over a market bubble or a cyberattack
from North Korea have prompted the South Korean government to announce a series of measures
to regulate virtual currency transactions.” The government said it will ban minors, foreigners
and financial institutions from investing in cryptocurrencies, and adopt a stricter
identification process that will allow only one account per person. It’s also looking into taxing virtual currency
transactions and profits. (Korean)
“There are many murky areas when it comes to virtual currency trading. There is no clear information on the issuer
or holder, and it’s not yet defined as a good or a currency. There have been several cases of hacking into
bitcoin exchanges in Japan, South Korea and the U.S. that have led to losses of hundreds
of millions of dollars. But there is no one to take responsibility,
and no way for bitcoin users to be compensated, for any losses.” Created in 2009 by an unknown person or group
using the pseudonym Satoshi Nakamoto, bitcoin is traded anonymously on a decentralized network
of computers. The virtual currency has seen its price surge
this year, but according to AQR Capital Management, only 1000 people hold 40% of the world’s bitcoin,
meaning the market is vulnerable to a sudden crash. To catch up with cryptocurrency trading, regulators
in the world are racing to come up with stricter laws. China and South Korea made it illegal for
companies to raise funds by issuing virtual tokens. And the EU agreed on December 15th to adopt
stricter measures to identify users and prevent money laundering and fraud. But despite these governments’ attempts to
dampen investor interests, at least in South Korea, people are still paying a premium to
invest in bitcoin and cryptocurrencies, hoping they will continue their dizzying rise. Kim Hyesung, Arirang News.

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1 Comment

  • Reply larry099 December 24, 2017 at 6:44 pm

    Investing in something more tangible is safer .. like tulip bulbs

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