Why South Korea Would Not Be Able to Ban Cryptocurrencies
Current situation surrounding cryptocurrency in South Korea is much more complicated that most of the people think. The recent series of regulatory laws only added to the interest of the global crypto community to the South Korean market. So, how far can the government go in its efforts to regulate the local digital currencies market?
Looking at this situation from afar, it is pretty obvious that the level of cryptocurrency hype in South Korea is very high. Market prices are still about 10% higher than in the rest of the world, and there are no reasons for this situation to change in the near future. Moreover, the South Korean government wants to protect consumers from speculation and financial losses.
There is one serious factor that makes it practically impossible to ban cryptocurrency in South Korea. Onde day there was a real chance that the government is about to ban all cryptocurrency trading with Korean won, just as Chinese authorities decided to fight bitcoin and other cryptocurrencies. However, this ban was not imposed, thank to the South Korean National Pension Fund.
Why? Because this fund has a large share of investments in all major South Korean cryptocurrency exchanges. Thus, a more tight regulation or even a potential ban on cryptocurrency is not in interests of the South Korean National Pension Fund. Owing to this, the South Korean government needs to act delicately with their regulation activities related to cryptocurrency in the country.
It also worthy to note that South Korea is one of the largest world's markets for hedge funds. With more than 700 of such investments funds, so far only around 30 of them are currently participating in the cryptocurrency market. However, according to owners of non-participating funds, they are looking for ways to take part in the "cryptocurrency game". Will the government dare to go against them?
The question is rhetorical.