Governments are well aware that a ban on cryptocurrencies is counterproductive

in bitcoin •  10 months ago

FUD from South Korea had, without a doubt, the biggest impact on the cryptocurrency markets last week.

South Korea

Last week, The Korean justice minister suggested a complete shutdown of cryptocurrency exchanges in the country and many western news agencies picked up the news as if a ban was already set in stone. This resulted in quite a big sell-off.

Today, the South Korean government officially put to rest the rumors about a closure of Bitcoin exchanges in the country. Bitcoin and other cryptocurrencies won't be banned in South Korea in the near future. However, the government is strictly monitoring illegal acts related to cryptocurrencies such as money laundering and tax evasion.

A ban could have a negative economic impact on the economy in South Korea. Estimates indicate that around 30% of the people in South Korea are invested in cryptocurrencies and it is known the government wants the country to remain at the forefront of innovative developments. Competition in this sector is particularly fierce in Asia.

Russia

Russia is also considering legalising the cryptomarket. Russia's Deputy Finance Minister Alexei Moiseev said last Thursday:

“We support the legalization of trade in cryptocurrencies on official exchanges. The Finance Ministry does not want to limit and regulate, but we will set some limits.”

This seems a refreshing turn in Russia’s attitude toward cryptocurrency regulation. In August of 2017, Alexei Moiseev said that it was “hard to argue cryptocurrency is not a pyramid scheme”.

Venezuela

Venezuela is already in a position to issue its own cryptocurrency. A currency covered by the country's oil reserves. Venezuela's president Maduro has called for 10 other countries to adopt his planned oil-backed cryptocurrency, the petro. However, his move follows the country's parliament declaring the issuance of the new cryptocurrency illegal.

Indonesia

Bank Indonesia (BI), the Central Bank of Indonesia, has been warning its residents for cryptos currencies for quite some time. They recently introduced a rule that prevents companies that manage payment systems from accepting cryptos as a payment method. They are now exploring further regulation options. The central bank also focuses on the popular tourist attraction Bali.

Office head of BI Bali, Causa Iman Karana, said over the weekend:

“We are looking out for bitcoin transactions in Bali, particularly in tourist spots. We will take measures against non-rupiah transactions.”

Singapore

Meanwhile, the Monetary Authority of Singapore (MAS) is trying to pursue an open policy and even gives companies the opportunity to carry out semi-authorised ICOs.
Although Ravi Menon, head of the Singapore Central Bank, is particularly keen on blockchain technology, he remains slightly sceptical about Bitcoin. He said today he hoped the technologies underpinning cryptocurrencies such as blockchain would not be undermined by an eventual crash in the virtual coins.

banoncrypto.png

A ban would be counterproductive!

If South Korea were to move to a complete ban of exchanges, then surrounding countries would like to jump into the vacuum that would arise. After all, the authorities know very well that a ban is counterproductive. Because of its decentralized nature, cryptocurrencies cannot be stopped. A country like Japan was the first to understand the real power behind Bitcoin and took the necessary steps. Many countries will follow.

If you can't beat them, join them!

Sources:
https://www.ccn.com/south-korea-govt-confirms-no-cryptocurrency-trading-ban-market-optimistic/
https://www.financemagnates.com/cryptocurrency/news/draft-russian-crypto-bill-legalize-trading-approved-exchanges/
http://www.thejakartapost.com/news/2018/01/15/bank-indonesia-police-prevent-bitcoin-transactions-in-bali.html
https://www.reuters.com/article/singapore-cenbank-cryptocurrency/update-1-singapore-c-bank-head-hopes-cryptocurrency-tech-will-survive-crash-idUSL3N1PA1J8


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Crazy how rumors out of one country can have such a huge effect on market trends. Its also funny how after the finance minister made these remarks, several thousand people signed a petition calling for his resignation. They were stating that because of his rumors, the market was negatively affected. Hilarious. Anyways, Korea is a democracy, there is no ban coming, just want some rules put in place and also to limit the amount of people trying to take money out of the country because of the large arbitrage opportunities

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@PenguinPablo... One of Your more important Posts in the last few weeks...in my humble opinion.

Japan has tended to be in a leadership role regarding crypto-currencies for a very simple reason, in my opinion... Japan has been in an "extended recession" since 1990. That is a very long time and so Japan has had almost no choice but to "Follow the Innovation"...

Necessity is the "Mother" of Invention and there are many financially depressed ( suppressed ) countries on this Planet that will "Follow the Innovation"...

Excellent Post, with good observations & insights !!

@originalworks

Keep Up the Great daily YT series... These videos help bring Truth & Honesty to a world filled with deception/propaganga /uncertainty within the crypto-currency space.

Perception is often molded to bring about the desired outcome by "The Powers that Were"...

While You are away from home, have Fun with Your Educational Seminar Series.

Cheers !!

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Worst part is alt-coins getting hit even more than BTC. Technologically speaking BTC is just garbage. There are many amazing projects that are going to be disrupting many industries. These idiots are selling off everything and I cry that I put all my savings on crypto and have no fiat for the fire sale.

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Yeah, BTC really just have its first mover advantage, it is slow, expensive and way over valued in my opinion. That and all these forked off coins where users just get to keep making money off them. Eventually things will change though as people become more aware of the landscape and that there are better options available

The European Union does not seem to me very happy...

I'd say banning nearly has the opposite effect of what is intended in most cases. If a government really wants to kill something, they keep it legal, but then regulate and tax it to death.

That is probably my greatest concern about cryptocurrencies. With widespread adoption comes greater interest by governmental bodies to control it and bend it to their will.

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They can only control it and tax it if we allow them to. Crypto is designed and meant to free us from the fiat currency ponzy scheme we are trapped in. Yet people are declaring their crypto earnings and being taxed on them. By doing this they have condemned it to be controlled by the central bankers and harder for those new to crypto to break themselves free of the fiat currency ponzy scheme. They'll come to crypto to escape and find that it's not what those in crypto claim it is.

In a market as immature (early on) as crypto, such rumours can have/has had massive effects on the market. I bellieve they will continue to do so until more countries officially legalize it and it becomes more widely adopted, but I believe that crypto will one day be widely adopted and replace FIAT!

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yes right dude

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Yeah, it's still in the early days of volatility because the governments aren't sure how to treat it, and many people still want to obey them.

I don't think it's possible to stop cryptocurrencies, they are already too powerful.Everyone knows bitcoin but new currencies like ripple and ethereum are gaining more and more popularity as well, countries who thinks about banning cryptocurrencies will suffer from this action, in simple words cryptocurrencies is our future:) Thanks for the article:)

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everyone is now aware of crypto but they dont know the whole story of crypto ,they even dont know about bitcoin completely.people have to educate them self by learning things.

awesome article i really enjoyed,i hope india should legalise crypto

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man if we legalize in India than we have to pay tax on it,which will be taken control indirectly by government only.

They're going to need teams of experts to analyze it before they can monitor & regulate cryptos.
The government systems built on piles red tape and paperwork will need a complete paradigm shift to regulate such a rapidly evolving technology. Digital tech evolves that fast that outdated government systems everywhere will be at a loss to keep up.

Penguin, When the Korean rumor ran last week, it seemed like a buy the dip moment. Loved the summary of the latest news from various countries in your blog. Besides Steem, What other crypto's are you invested in? Looking for ideas as I try to diversify my crypto portfolio. Upvoted and resteemed

Thanks for the post! I think in an government there are always different force so it's very difficult to say it's rational for a country so it won't do it. There are always different views to politics.

All these rumors and news stories are great to read, but what we must realise is people should come together and say to these governments no we don't want your control anymore.

The south korean people did it and threatened to get ministers sacked so yes it can be done. People need to stick together and not let them control us with all these rumors and false lies.

Oh yeah!

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:)))))))) Ah ... where you get this videos ? :))))

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hahahaha, I cant stop laughing....lol @ronel

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Hahahahah, man how do I connect outside of the blockchain

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man he is my favorite one .thanks

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Thanks for giving us a lot of information about bitcoin,crypto,cryptocurrency.I always visit your site and wait for next post.
thanks

Are governments really in control or are they puppets?

thanks a lot man who clear out about what's happening in Korea. Also from what i 've read everywhere cryptos run smoothly and seem to have future except Indonesia (which by the way has a huge community in here). From that part

They recently introduced a rule that prevents companies that manage payment systems from accepting cryptos as a payment method.
Either i believe they will understand the power of cryptos and try open up their minds or eventually the companies will leave and go try other countries will more open minded policies

The problem is that the government of the Republic of Korea is going to regulate it without knowing how to deal with it.

Yes you are absolutely right..even they will definetly rethink about it ..as the cryptocurrency is also important for a country economy growth.

You are very correct if you cant beat them join them

Much appreciated - upvoted and resteemed.

does not want to limit and regulate, but we will set some limits.”

ummm....translation error?

or just typical government stupidity?

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I would say BOTH !!!

Thank you

Each passing day more and more believers. When the government makes it official many of the top coins will moon. We should all be accumulating to prepare for that day. Thanks.

Fully agreed with your words @penguinpablo,

Governments are well aware that a ban on cryptocurrencies is counterproductive.

You mentioned my country, Singapore! Woohoo! It is a relief that my government practised open-policy with cryptocurrencies but I am waiting for Xfers, an internet payment service in Singapore to resume their deposit services so that I can buy STEEM man.

Such exciting times and so happy to be in what is still considered Early !!!
We all have a chance to learn and earn together as a Community STEEM

Thank you for sharing

Las criptomonedas son totalmente descentralizadas y basada en la confianza que le tenga cada persona, podrán prohibirlas e incluso querrán eliminarlas debido al riego que corren muchos banqueros, las cripto ya son un mercado que no puede frenar y día a día se ira fortaleciendo y ganando más terrero con respecto a otras monedas mundiales.

Exchanges would rather not be banned because it limits their reach but then cannot be completely shut down. Sensible regulation is best for both sides.

gg govs! ;)

As we all know each & every government know that today or tomorrow they have to accept the crypto currencies as the platform to do transaction .but they are scared that they will loose control on the peoples wealth ,nobody will give attention to the government when they can do it by crypto.

Think a 100k signatures in a very short space of time should tell them something

very good post it, i like @penguinpablo

this is crazy man

I may be stating the obvious, I don't believe they really want anarchy just yet, if they are too obvious with the control. I'm sure many members of these governments probably have crypto currency, especially bitcoin.

crypto has come to stay... i think the best government can do is to follow the technology, monitor and regulate it not banning it.

hello pls follow @chidoziemike
and pls upvote my post
https://steemit.com/cryptocurrency/@chidoziemike/is-thebillioncoin-tbc-a-scam

Very good news update .Thank you for your share .. On
I always follow your blog. It has good educative value and also informative

Thanks a lot for your news, best of luck my dear

Cryptocurrency is the future, the earlier the government realize that, the better

It was a pretty sour week overall, hoping that the market in general can pick up a bit over the next few weeks.

@penguinpablo: another nice breakdown! Interesting to see the (re)actions of the govs. Bad movie. This year already started controversial for cryptos. More to come for sure! It's gonna be epic!

I couldn't help it.. for your post I gave away the chart position in my blog feed - although I want to see my latest post #trending so badly ^^

*aahhh whatever.. #resteemed the daily dose of #Steem #News. Can't upvote this time :/

Is Steemit still having issues besides the wallet bug?!?

Just about the same time you did wrote your post, @penguinpablo

https://steemit.com/news/@lighteye/bitcoin-states-strikes-back

I remember the words of Andreas Antonopoulos: “You do not poke a monster worth 20 trillion dollars with a sharp stick saying: ‘Now I'm going to disrupt you’, and expecting it will just drop dead!”

Backlash is expected, but the most fun part is that vast majority of governments, with their bureaucratic minds, still cannot understand they've already lost the game :)

Wow, this is something consoling afterall, thanks for sharing it. 👍
Follow me guys, let us help eachother.

thanks for sharing this news to bring some soothing truth to the plate. upvoted and resteemed ! worth it for sure :)