Sunday, January 24, 2021 Contact us

South Korea PM: Bitcoin is a gateway to illegal activities

South Korea PM Bitcoin is a gateway to illegal activities

South Korean Prime Minister, Lee Nak-Yeon, has expressed worry over the rising interest of youth in crypto currencies like Bitcoin. He called it a bad influence, saying it could lead the country's youth get involved in illegal practices.

 Addressing a recent cabinet meeting, Nak-Yeon took up the anti-Bitcoin mantle and called it a gateway to make quick money or getting into in illegal activities like drug dealing or multi-level marketing frauds.

 Over the past several years, experts and many public figures have stated concern over the increasing use of digital currencies being used by criminals to buy drugs and weapons. The prime minister also warned citizens about potential scams and phony schemes which often involve digital currencies.

 In the wake of the rising threat, the South Korean prime minister has asked government regulators and agencies to join hands to monitor the crypto currency market and take further measures in order to protect children from its destructive influence.

This is not the first instance of that the government of South Korea to take a stance against crypto currencies. In September 2017, the South Korean Financial Services Commission (FSC) had enforced a country-wide ban on all new initial coin offerings (ICOs).

 South Korean exchange, Bithumb, is one of the top crypto currency exchanges worldwide. According to Coinmarketcap website, the South Korean exchange has the highest daily volume in the world with over $2 billion being traded every day. The mass “exodus” of Chinese traders after the recent cryptocurrency ban in China is believed to be the reason behind high volume at the Korean exchange.

The report of Shinhan Bank, the second largest bank in South Korea, working on its Bitcoin “vault and wallet services” had made the headline earlier this week. Shinhan would become the first major bank to offer Bitcoin storage services direct. Last year, Shinhan Bank had become the first major financial institution in the region to utilize the Bitcoin blockchain.