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South Korea to tackle Bitcoin frenzy with strict new rules on cryptocurrency trading

By midian182 · 10 replies
Dec 13, 2017
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  1. South Korea is preparing to introduce a series of new rules on cryptocurrencies as it looks to prevent speculative investment amid fears that Bitcoin could be a bubble. It also wants to curb the practice of digital currencies being used in crimes.

    Following an emergency meeting by ministry officials, the government is preparing a bill that will ban minors and foreigners from trading in cryptocurrencies or opening investment accounts for them within South Korea.

    Furthermore, officials are proposing a ban on all cryptocurrency transactions unless they take place through exchanges that meet certain conditions: customers’ funds are to be kept separately, exchanges must explain investment risks, users’ real names have to be confirmed, anti-money laundering and asset protection systems need to be in place, and transaction details must be disclosed to the public.

    Financial institutions such as banks will be prohibited from holding, purchasing, and investing in digital currencies. And the government is to form a tax force that will decide whether profits made on cryptocurrencies should be taxed.

    The measures must be submitted to the National Assembly so they can be implemented.

    There had been talk of a complete ban on cryptocurrencies in the country, but the government said it did not want to stifle innovation in fintech.

    Seoul-based Bithumb, the world’s busiest virtual currency exchange, has said it would comply with the rules. Its trading volume reached 56 trillion won ($51 billion) last month, up from 305 billion won at the start of the year.

    Reuters reports that Philip Lowe, Australia’s central bank governor, today warned that fascination with digital assets felt like a “speculative mania.”

    Permalink to story.

     
  2. Uncle Al

    Uncle Al TS Evangelist Posts: 4,186   +2,653

    It was bound to happen and you can bet the US Treasury is exploring how to do the same in the US .....
     
  3. OutlawCecil

    OutlawCecil TS Guru Posts: 479   +332

    *sigh* I'm all for governments keeping things under control but this is a good example of overstepping bounds. The government can't step in and tell me to buy an Apple phone instead of an android in the same way it shouldn't be allowed to step in and tell me I can't buy bitcoins. Did I or did I not earn my own money? Do I or do I not have the freedom to buy whatever I want with it? It's not drugs or anything that can hurt me or somebody else. It's literally digital data.
     
  4. SBKenn

    SBKenn TS Rookie

    Crypto currency, as it stands, is a haven or fraudsters, gangsters, extortion (inc. ransomeware), and other crime related payments. The control is unlikely to tell you what you can do with your money, just that it should be traceable, and profits taxable.
     
  5. senketsu

    senketsu TS Guru Posts: 699   +465

    “Bitcoin was supposed to demonstrate the power of a true free market,” the developer Adam Chalmers tweeted on Wednesday afternoon, when the average price of Bitcoin was around $13,000. “Instead it's full of scams, rent-seekers, theft, useless for real purchases and accelerates climate change. Mission accomplished.”

    -from TechSpot Weekend tech reading, Matthew DeCarlo article on Dec 10, quote from article from "The Outline"
    https://theoutline.com/post/2592/bitcoin-is-none-of-the-things-it-was-supposed-to-be
     
  6. Skjorn

    Skjorn TS Maniac Posts: 290   +159

    Lmaooo people think crypto is causing climate change. Anything in the world tied to currency is full of scams. Not useless if you buy a house and car with it.

    Meanwhile same people also think the amount of gold their country possess dictates how much their daily efforts are worth.
     
  7. Abraka

    Abraka TS Addict Posts: 171   +53

    Most of the ransomware is actually made under the government protection. You don't think they would already find the authors of the "FBI" trojan and other elusive hacker groups, if they weren't working for the government?

    NSA can easily find Russian hackers in the middle of nowhere, when they want, but they can't find a big and rich group of hackers that are extorting money from the citizens for years, using the same app? Yeah, I really believe that.

    This is the way government agencies pay to the hacker groups which work for them. "You hack Sony for us, you hack Airbus for us, you hack Chinese servers for us, and in exchange you can extort money from the ordinary people. We'll pretend we're chasing you, but we can't catch you".

    That's how it works. Because when they really want to catch someone, they find them in the middle of Indonesia, hidden in a swamp with a breathing tube. As was proven many times before.
     
  8. senketsu

    senketsu TS Guru Posts: 699   +465

    to lazy to look up any links, but how's 5 seconds of work which turned up Newsweek for you.
    "The amount of power necessary to support bitcoin has increased significantly in recent months, as its price has surged to record levels."
    "Analysis of how much energy it currently requires to mine bitcoin suggest that it is greater than the current energy consumption of 159 individual countries, including Ireland, Nigeria and Uruguay. The Bitcoin Energy Consumption Index by cryptocurrency platform Digiconomist puts the usage on a par with Denmark, consuming 33 terawatts of electricity annually.
    edit: in a article written 2 days ago, Bitcoin is 61st user of electricity globally and moving up. In fact if current trends are projected, by 2022 all the worlds energy will go to mining bitcoin.
    edit: try this one " recent research from Dutch Bank ING found out that one bitcoin transaction consumes sufficient electricity to power an average household for a whole month."
     
  9. senketsu

    senketsu TS Guru Posts: 699   +465

    so let's add one more. Bitcoin was to be independent of the banking industry, provide anonymity, be an electronic cash system. It's failing/failed on all 3. Middlemen (Bitcoin exchanges, real names have to be confirmed, so volatile it cannot be used for cash) It has just become another tool of the big banks to deal in and make more money for themselves. Just the other day I saw an ad for a company selling Bitcoin futures (!!). Ironically, the only place it worked as intended was on the "Silk Road" deep, dark web and all that.
     
  10. Axiarus

    Axiarus TS Evangelist Posts: 318   +175

    And this is how bitcoin busts. Governments start regulating it.
     
  11. Skjorn

    Skjorn TS Maniac Posts: 290   +159

    hahaha this is serious. I better bust out my perpetual energy machine I have sitting in the basement too.

    All the worlds energy...lmfaooo
     

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