Led 15

South Korea Won’t Ban Bitcoin Trading as Price Chart Turns Bullish

· January 15, 2018 · 7:00 am

Bitcoin pundits are forecasting a fresh bull run as news from South Korea and the cryptocurrency’s price turn markets increasingly optimistic.


Seoul To Regulate After ‘Sufficient Consultation’

After the South Korean justice minister caused “confusion and anger” last week by saying the government would ban cryptocurrency exchanges, local news media report, the latest statements from Seoul indicate a significant U-turn.

“The proposed shutdown of exchanges that the justice minister recently mentioned is one of the measures suggested by the justice ministry to curb speculation,” Yonhap News Agency quotes a statement from the Government Office of Policy Coordination today.

A governmentwide decision will be made in the future after sufficient consultation and coordination of opinions.

Politicians had previously sought to impose strict controls on Bitcoin and cryptocurrency trading activities within a seemingly very short timeframe.

South Korean Prime Minister Warns Youth That Bitcoin is a Gateway to Illegal Activities

In December, new laws were passed which would have significantly limited exchange activities from as early as January 20.

After mass public uproar and most recently accusations lawmakers were “ridiculing the Korean people,” the outlook for cryptocurrency regulation in South Korea has suddenly begun to look notably more constructive.

“Monday’s announcement suggests that a shutdown is not likely in the near future,” Yonhap concludes.

Bitcoin 50-Day Moving Average Dip Excites Investors

Across global markets, Bitcoin prices are already reacting in kind to the new hope, with one analyst noting Monday’s dip below the 50-day moving average is characteristic of an impending move upwards.

Korea had been the most active trading community in the world for Bitcoin, its influence still conspicuous; a petition even calling for senior ministers to be fired over legislation mismanagement accrued over 130,000 signatures in days, Bitcoinist reported last week.

Meanwhile, details of the style of regulation that could take hold in the coming months remain sketchy.

Across the water in Japan, a more advanced model of permissioned exchange trading appears to be delivering positive economic results. Analysts have even said that Bitcoin investors alone could already be contributing as much as 0.3% to the country’s GDP.

What do you think about the latest developments from South Korea and their impact on Bitcoin? Let us know in the comments below!


Images courtesy of Shutterstock, Twitter

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Led 11

The Noose Tightens? US Senate Meeting with Market Regulators Over Cryptocurrency

· January 11, 2018 · 6:00 am

Bitcoin regulations may be on the way as the US Senate Banking Committee is scheduled to meet with top market regulators in February over cryptocurrency.


The noose may be tightening around Bitcoin and its digital brethren in the United States in the coming months. According to Reuters, the Senate Banking Committee will be meeting with some top financial regulators in early February. Their topic of concern – cryptocurrency.

Are Regulations Coming?

Right now, there are no federal regulators that oversee cryptocurrency within the US. The government (and most importantly, the IRS) view crypto as property that’s subject to capital gains taxes.

However, this may change in the future. The Senate Banking Committee will be talking to Commodity Futures Trading Commission (CFTC) Chairman Christopher Giancarlo and Securities and Exchange Commission (SEC) Chairman Jay Clayton to discuss Bitcoin and other cryptocurrencies, along with any risks that crypto trading can bring to the public.

Will this meeting lead to future Bitcoin regulations? My magic 8-ball says that it’s a distinct possibility.

Governments Yearn for Control

The reality is that the CFTC and SEC have been staking out some jurisdiction over crypto. The CFTC did allow both CME and CBOE to begin listing Bitcoin futures contraacts last month. However, they are now reviewing their process for this after receiving some criticism.

It should be noted that both the SEC and CFTC have issued warnings about the volatility of cryptocurrency and that they may not be able to protect investors from crypto scam artists. There are always those looking to earn some ill-gotten gains by using crypto as the lure. Case in point is BitConnect, who were shut down by the state of Texas over their claims of monetary rewards.

Yet any time government committees get together, it should be a cause for concern. The reality is that any national government will not be too friendly with an economic system that lies outside of their control. To that end, you can bet that regulations are at the forefront of every senator’s mind when that meeting rolls around.

Of course, one of the chief draws for cryptocurrency is its lack of centralization and regulation. Many view virtual currency as an expression of economic freedom, but governments look at crypto in a different light: something to control and to tax.
Shidan Gouran, president of Global Blockchain Technologies Corp. summed up the thought that one of the reasons why cryptocurrency was so valuable was due to a lack of regulation. He said:

We believe that the greatest threat is regulation. Several governments across the world have clamped down on exchanges, some halting trading altogether. Others have gone on to outright ban the use of Bitcoin. Sudden government actions in major Bitcoin trading hubs stand to disrupt the market, with the potential to severely affect the utility of bitcoin — and accordingly, the value.

Are you worried that the upcoming Senate Banking Committee meeting will lay the cornerstone for increased Bitcoin regulation? Let us know in the comments below.


Images courtesy of Pixabay, Wikimedia Commons, and Bitcoinist archives.

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Led 03

Malaysia Remains Open to Crypto Trading

· January 3, 2018 · 6:30 am

With the majority of Asian nations attempting to regulate cryptocurrency exchanges, the number of those declining to clamp down is dwindling. Malaysia is among those nations that are currently free from regulatory laws and are not imposing a ban on crypto.


According to the Malaysia Reserve, the country’s finance minister said that the central bank will not impose a blanket ban on cryptocurrencies as such action will only curb innovation and creativity in the financial sector, particularly fintech. In an interview with the news outlet, he stated:

The government is fully aware of the need to strike a balance between public interest and integrity of the financial system.

Public Protection

Similar to action in Thailand, Malaysia wants to inform and protect the public from making rash investments in the nascent crypto markets. The ministry said that the monetary authority is taking a cautious approach with digital currencies, including Bitcoin, to ensure safety measures are in place to protect the interest of the public.

The statement went on to say:

It is not the intention of the authorities to ban or put a stop on any innovation that is perceived to be beneficial to the public. However, similar to any financial and investment schemes, there is a need to have proper regulation and supervision to ensure any risk associated with such schemes are effectively contained.

Malaysian Government to Introduce Regulatory Framework for Cryptocurrencies

No Regulation

Currently, Bank Negara Malaysia (BNM) does not regulate cryptocurrencies. However, it will ensure that exchanges comply with requirements to conduct customer due diligence and report suspicious transactions to the authorities. This is a similar stance to that taken in South Korea, where authorities have laid out plans to regulate how exchanges handle their clients to prevent money laundering and criminal activity.

The Malaysian finance ministry went on to state:

Financial innovation will not only enhance productivity of economic activities, but also make financial intermediation more seamless, it is imperative for the authorities to have a thorough understanding on digital currencies before embarking on any policy actions. This is particularly relevant to recent innovation like bitcoin, which remains unregulated globally and not battle-tested against shocks, unlike more conventional mediums of exchange.

With a global market capacity rapidly approaching $700 billion and the majority of crypto trading taking place in Asia, governments and central banks in the region need to get ahead of the game.

Will Asian nations continue to lead the way in the crypto markets? Add your comments below. 


Images courtesy of GoodFreePhotos, Pixabay, and Bitcoinist archives.

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