South Korean Government has called for an emergency meeting targeted at discussing trading of cryptocurrencies. And regulatory or other measures to be introduced in the market.
This is according to a central bank official on Wednesday. While the official did not give further details, the meeting shows the frenzy over cryptocurrencies in the country. The official said the government is planning to implement regulatory measures on cryptocurrencies.
Following this announcement, shares related to Bitcoin trades fell. Since the withhold stakes at Vidente Co Ltd and Omnitel Inc exchanges falling by 8.4 and 4.9 % after the announcement. JCH Systems Inc’s Bitcoin-related shares also fell 4.2 percent.
Essentially, the scenario of South Korean Cryptocurrency trading markets is that many inventors are trying to invest in cryptocurrencies. The major issue for many people is that the investor is investing in unregulated OTC markets. Therefore, progressively they fall victims for Ponzi scheme and scams.
And as the government shows concerns about the volatility and scams around cryptocurrencies. The co-founder, and CEO of Korbit, Tony Lyu says words spread fast in South Korea markets.
“Word just spreads really fast in Korea. Once people are investing, they want everyone else to join the party. There’s been this huge, almost a community movement around this.”
Remarkably, the South Korean market wants to overcome the volatility and scam or other issues by providing exchanges with licenses. Since to operate as strictly regulated financial service providers.
The announcement of the emergency meeting follows another recent announcement by South Korea’s FSC chairman Choi Jong-Ku who said the country is planning to introduce regulatory measures although not to necessarily ban cryptocurrencies. He said the measures will minimize side effects of volatility of Bitcoin transactions and lessens the speculative nature of the investment.
Australia’s central bank governor said that the fascination with cryptocurrencies feels more like a “speculative mania,” days after New Zealand said Bitcoin seemed a “classic case” of a bubble and its future is in doubt.
New Prime minister Lee Nak-Yeon said in November that he was worried that students might jump into the frenzy and asked the government to take “some serious pathological phenomenon.”
But it appears that broad announcements by many countries and regulatory agencies are inspiring announcements by other countries and the spat around cryptocurrencies and not necessarily on facts about cryptocurrencies. Russia has already said that it will never legalize cryptocurrencies as a method of payment.