Cryptocurrency Trading Continues to Puzzle Korean Politicians
Today in Seoul, businessman and aspiring politician Chulsoo Ahn shared his puzzlement and displeasure at the rate of cryptocurrency investing in his native South Korea. He called the cryptocurrency trading risky and praised China’s ongoing CBDC pilot program as a favorable solution.
Through Q1 of 2021, Korean crypto exchanges logged over 2.5 million new user accounts. Trading volume on domestic crypto exchanges has surpassed that of KOSPI and KOSDAQ, their stock exchanges, on numerous occasions. In light of this, politicians have started to take a fresh look at the industry.
At a National Assembly policy meeting regarding virtual assets today, Chulsoo Ahn noted that trading cryptocurrency comes at great risk for traders since the industry appears to be lawless due to the absence of consumer protections and industrial transparency. He stated further that the government has a responsibility in the matter.
“[It is unimaginably irresponsible for the government to do nothing in this situation,]” claimed Ahn.
In his statements, Ahn mentioned the criticisms issued by FSC Chairman Sungsoo Eun, the same chairman who helped push through the recently-implemented Special Reporting Act. Eun, Ahn, and several other government officials wonder now why young people have indebted themselves in order to gain more power trading cryptocurrency.
A quick assessment of the down job market and poor working conditions for those same young people might help clear their lack of understanding.
Earlier criticisms were echoed further by pointing out that crypto investors do not perform fundamental analysis of a coin and just look at charts to make their decision. Such a method leads to great losses. Not mentioned was the life-changing wealth that many others have enjoyed.
China’s Digital Yuan
Another topic of note at the meeting was China’s Digital Yuan CBDC being piloted across various parts of the country, even extending outside of China to protectorate Hong Kong. Today the CCP announced it would issue some $6.2 million in Digital Yuan to Beijing residents in a trial run for the capital.
Their ambitious infrastructure, which could potentially undermine paper fiat in just a few year’s time, impresses the likes of some Korean politicians. Ahn expects that the full roll out of the Digital Yuan could bring stability to the cryptocurrency markets without realizing that the so-called ‘Govcoin‘ would likely be mutually exclusive from the cryptocurrency markets considering the CCP’s recent stance against Bitcoin and miners.
The Bank of Korea has continued to explore their options with a Digital KRW of their own since late last year. Ahn’s praise of China’s program may be a way of pushing Korea’s own project along.
