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Bitcoin Not A Currency And Would Not Be Regulated In South Korea

Singapore Set To Include Cryptocurrencies In Financial Regulation

Bitcoin – the world’s number one cryptocurrency is always in the news these days. From the suspension of Segwit2x hard fork to the massive price correction that pulled the price down to around $5,000 region before bouncing back to its feet with a new all-time high, Bitcoin is undoubtedly not just called the king for nothing.

Satoshi Nakamoto – the ever-anonymous Japanese mathematician and cryptographer who created Bitcoin. Satoshi Nakamoto created Bitcoin to be a borderless peer to peer payment system that eliminates the need for transactions to go through third parties before reaching the recipient.

As contained in the Bitcoin whitepaper, Bitcoin was built for the sole purpose of making financial transactions possible without having to pass through the hassles of a financial institution or a third party.

In essence, Satoshi Nakamoto created Bitcoin to be a currency, a digital cash system and a medium of exchange for goods and services. Therefore we could say any other use of Bitcoin serves a secondary purpose.

SOUTH KOREA REFUSES TO REGULATE

While bitcoiners and Bitcoin investors understand the fact that Bitcoin is the “best currency in the world,” the South Korean government does not share the same views.

The South Korean Financial Supervisory Service has made it categorically clear that cryptocurrencies especially our darling Bitcoin, is not a legally recognizable financial instrument; hence it would not be regulated.

Choe Heung-Sik  – the governor of South Korea Financial Supervisory Service(FSS), has said in a statement that Bitcoin and digital tokens are not legal currencies; therefore, FSS will not regulate the cryptocurrencies market, the same way the gambling and casino ecosystem is unregulated in the country.  The official further noted that they are keeping a close eye on the cryptocurrencies ecosystem and will regulate the market when Cryptocurrencies become legal currencies.

ZIMBABWE  SAYS IT IS ILLEGAL

In another development, the government of Zimbabwe shares the same views on cryptocurrencies with South Korea. The director and registrar of the Reserve Bank of Zimbabwe(RBZ)- Norman Mataruka has made it clear in a statement to reporters that Bitcoin is not legal and will not be allowed in Zimbabwean markets. He further stated that research is being carried out to determine the risk involved in cryptocurrencies and that until a regulatory framework is mapped out for cryptocurrencies, it remains illegal in the southern African nation.

It is pertinent to note that Zimbabwe is trying to recover from a ‘partial’ military coup that saw the end to a 37year rule of President Mugabe.  In Mugabe’s regime, Zimbabwe was plagued with hyperinflation and scarcity of funds, which led to the adoption of Bitcoin as a medium of exchange and store of value by many Zimbabwean citizens.

With this recent announcement by the RBZ, it remains to be seen what its resultant effect will be on the Zimbabwean Crypto ecosystem.

SINGAPORE SET TO  INCLUDE CRYPTOCURRENCIES IN FINANCIAL REGULATION

The Monetary Authority of Singapore (MAS) is doing all things possible to put a new financial framework in place.  This new financial policy known as the Payment Services Bill looks to bring all regulations of payment activities under one law.  This bill will include cryptocurrencies, and after its successful enactment, all firms in the financial services industry including cryptocurrency exchanges will only need one license to enable them to carry out all forms of payment activities.

In an interview, Mr. Ravi Menon- the Managing Director of the MAS noted thus: ” We want to put in place a forward-looking  regulatory regime to encourage wider adoption of secure e-Payment solutions.”

If all things go according to plan, the bill would have been entirely enacted by the first quarter of 2018.

It is believed that this regulation would further boost the Crypto ecosystem and also strengthen the Singapore payments ecosystem and the economy in general.

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