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South Korea approves law for exchanges


Not all countries in the world have reacted in the same way to the arrival of Blockchain technology and cryptocurrencies. Well, while some have been very receptive, opening their doors to cryptoactives. Others, such as South Korea, have received them with suspicion, trying to create mechanisms to keep them under control, including permission for exchanges we will talk about today.

The fear of governments

Governments have not responded unanimously to the transformations that Blockchain technology has brought to our societies. Trying to become attractive territories for companies dedicated to the development of block chains, as is the case in countries such as Belarus or Ukraine. Or on the contrary, putting all possible obstacles to the expansion of cryptocurrencies in its market, as South Korea tries to do.

However, where does this negative behavior with respect to cryptocurrencies come from? The answer to this lies in control, or more specifically, in the possibility that governments lose a little of the control they maintain over the economy and society.

And, the decentralized operation of cryptocurrencies represents a challenge to the way governments have been working. Well, so far, they have total control over the national money market, which they exercise through the central bank. Thus, the government has the power to issue money and cut interest rates without any control.

Therefore, given the existence of a technology such as Blockchain, which provides the ability for users to control the operation of their own money. It is normal for the first government reaction to be rejection, in the face of a threat to its power.

The laws of South Korea

In this regard, the case of South Korea may be paradigmatic. Well, despite being one of the leading nations on issues of innovation and new technologies. The South Korean government has also developed a skeptical policy towards cryptocurrencies. Making use of tools such as establishing a 20% tax on crypto transactions to stop them.

This, of course, has consequences for the Asian country. Since, by maintaining a confrontational attitude towards cryptocurrencies, South Korea would be discouraging the installation of Blockchain companies in its territory. This prevents the development of capacities in the use of block chains in the country.

Despite this, the South Korean government would continue trying to control cryptocurrencies. This time with a law that regulates the operating permits for crypto exchanges. Only granting them to those platforms that provide confirmation of the real names of their users.

Although at first glance, this may seem like a new attack against the crypto world. The truth is that the existence of a regulation like this, although tough, can provide a reliable legal framework for Blockchain companies.

Especially when four major exchanges, Upbit, Coinwon, Bithumb and Korbit already have this type of confirmation. So we would have to wait to know what consequences this law will have for crypto companies in South Korea. Our Data of today being the same here in CriptoTendencia.

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