Bitcoins in Korea
Korbit, Korea’s biggest bitcoin marketplace, issued a statement warning that the government should be wary of falling behind the curve with bitcoins.
The warning was a direct response to a statement released by Korea’s financial authorities. The Ministry of Strategy and Finance, the Bank of Korea Financial Services Commission, and Financial Supervisory Service announced on December 5 that they would monitor bitcoin trade, closely watching for money laundering and any illegal activities infringing on real name transactions, after concluding that bitcoins did not qualify as legitimate financial products.
Korbit Director Kim Jin-hwa said in his comments on Korbit’s Facebook page, “Bitcoin’s success is owed to creativity and innovation. It has nothing to do with the government’s endorsement or nurturing policies.”
He also said, “Korea cannot take a back seat and ignore the changes that are sweeping the globe. The government must work together closely with the private sector to not fall behind in keeping up with the global innovative trend, and provide a platform for constructive discussion for such paradigm-changing issues.”
Bitcoin is a virtual currency that is rapidly spreading throughout the world as a digital alternative to hard currency.
It has, however, downsides such as unstable value and being used for black market money laundering, just to name a few. As such, Germany is considering taxing the bitcoin, and China has barred financial institutions from engaging in bitcoin trade. Korea’s financial authorities have taken a similar tack, putting restrictions on bitcoin trade.
Kim said, “It is important to discuss bitcoins’ legitimacy and the rules governing its trade. However, it is also important to utilize the new trend from an industrial perspective.” He urged financial authorities by saying, “Balanced and constructive discussions are needed.”