Cryptocurrency has been getting mainstream attention over the past months especially when the price was rising so fast that Bitcoin was able to hit $20,000. After Mid-December, things went downhill from there and even the current price of Bitcoin hasn’t been near its all-time high.
In fact, according to a survey that was made by venture capital firm Blockchain Capital, they have discovered that 30% of millennials aged 8 to 34 years of age would rather invest $1000 worth of Bitcoin than $1,000 of government bonds or stocks.
Unfortunately, South Korean youth are facing problems now that Bitcoin along with other cryptocurrencies haven’t completely recovered its price last December.
South Korea As the Perfect Launching Pad for Crypto Investing
According to cryptocurrency adviser Jeong SoonHyeong, there is a reason as to why South Korea is the perfect market for cryptocurrencies. South Korea ranks as one of the countries that have the fastest internet speed. And because of this, it becomes one of the reasons why a lot of people are into crypto investing.
In addition to this, South Koreans do have the tendency to look for things that are dynamic and new, “and the IT infrastructure, and the state of the economy have resulted in a craze for investing in cryptocurrencies”.
According to Elaine Ramirez, a Seoul-based tech journalist, she mentioned that “It’s a global trend”. She also mentioned that “On a macroeconomic level, it’s a way to gain greater opportunities when economic growth has been sluggish”. And sadly, she also believes that “and young adults see it as an escape from chronically high youth unemployment rates”
Updates on Regulations
Despite South Korea backing out from its initial plans to ban crypto activity completely in the country, there are regulatory updates that still make the crypto market less enticing compared to a few months back. In fact, foreigners are now prohibited to partake in South Korea’s domestic exchanges. Also, anonymous accounts have also been banned.
And South Korea isn’t the only country that has tightened their regulations on cryptocurrencies. In fact, there is also China banned crypto activity completely from cryptocurrency exchanges (both local and international) as well as ICOs. Regulators fear that cryptocurrencies can be used for money laundering and for other illicit activities.
If you will ask Bank of England governor, Mark Carney, he mentioned that “the time has come to hold the cryptoasset ecosystem to the same standards as the rest of the financial system”. However, he mentioned that cryptocurrencies still don’t still pose a risk to financial stability. What he suggests is for cryptocurrency to be regulated rather than get banned.
“A better path would be to regulate elements of the cryptoasset ecosystem to combat illicit activities, promote market integrity and protect the safety and soundness of the financial system”.
Cryptocurrency is so popular in South Korea to the point that digital currencies even have a price that is termed as “Kimchi Premium”. But given the current price of cryptocurrencies, one thing is sure—many have lost a good amount of their investment especially those who joined a bit late in the game.