- January 16, 2018
- Category: Bitcoin, Business, Cryptocurrency, Updates
Cryptocurrency is taking the finance market by storm and there are now more traders and miners than ever before. Many of the issues that come with something so volatile as a Bitcoin account is the fact that this type of currency is not tied to any specific government or business entity. This allows users to trade how they want and for what they want, with no negative residual effects trickling down.
South Korea in China’s Footsteps
China has already taken steps to completely shut down their cryptocurrency accounts and mines to help protect not only their investors but also their financial market. South Korea is now moving in that direction, to protect their own market that they perceive to be vastly overheated. South Korean authorities have given all Bitcoin and cryptocurrency investors until the end of January 2018 to convert anonymous bitcoin accounts into named accounts or they will receive a penalty. South Korean officials hope to lessen the craze that has surrounded cryptocurrency by limiting access to accounts that could possibly be used for nefarious reasons.
Fighting Illegal Transactions in Cryptocurrency
The hope is that those who intend to use cryptocurrency for under the table payments or business that would be illegal with typical tender, will be tracked and recorded for security reasons. Officials stated that there must be something done to help curb speculation and slow down the market lest a shutdown be needed. So far, South Korea has not announced any such plans to shut down the cryptocurrency or bitcoin markets as China did but the Justice Minister did not rule out the possibility entirely.
Bitcoin Shutdown in China
In China, the Bitcoin shut down went as smoothly as one might expect, but in South Korea the announcement of a potential shut down was met with opposition on all sides from both politicians and traders that were part of the market. A petition has been circulated and signed by as many as 100,000 people to halt the shut down of the market and to urge the government to step back from the measure entirely.
Though the amount of the fine has yet to be determined and fully finalized, the government is working quickly to hammer out the details as the deadline has been set and is approaching rapidly. Officials from major banks across South Korea like Shinhan Bank have talked openly about phasing out any anonymous accounts and to help take the cryptocurrency market down to a safe pace.
Opportunity For Others in the Digital Market
Like we saw with the China shutdown, often times a government closing a door, is another government holding one open. With trading accounts being forcibly named, some of the large corporations or individuals might be forced to relocate, or work around this problem. In the China problem, countries like Quebec welcomed many large conglomerates who needed accommodation after a tough transition. An opportunity like this is always what someone is waiting for.
Nowhere But Up For Crypto
Bitcoin and other cryptocurrencies have grown immensely over the past year and are becoming incredibly popular through the media and other outlets. As the market becomes more stable it is going to need more regulations and safeguards and most countries are now working to make sure these safeguards are in place and ready to go. In some cases, frowning upon cryptocurrency may not be a financially viable decision. But because of the harsh volatility, and the dangers it can have amidst small economies, taming the best seems safer.