South Korea bans venture capital companies from investing in digital exchages

[anitalxy]

                           

South Korea bans venture capital companies from investing in digital currency exchanges.

     According to News.mt.co.kr,The South Korean government classified the digital currency exchange as a fortunate profit-making industry and prohibited venture capital companies from investing.
    The government defines virtual currency exchange as a gambling business and excludes it from venture capital investments.
    Some analysts pointed out that this may indicate that the South Korean government believes that digital currency exchanges will have a greater negative impact on society than on the development of the blockchain market.

    How do you see this news?

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[jeromix]

Yeah definitely those companies could go take advantage on investing local exchanges wherein it is a good kind of business created on cryptocurrency. Thus, capitalist that will going to join on this crypto exchange from fiat to crypto and crypto to fiat will definitely make them another good source of income. So this kind of project should be given to the crowd and not only to those capitalist that will surely get a huge benefit on this project.

[Veterock]

One thing pleases me in this situation! The government of South Korea has not banned the ICO, as it did in China

[Askend]

the most important thing to look at is the danger of virtual money, both from its function as a means of payment and also as a commodity.

Bank Indonesia said that ownership of cryptocurrency is very risky and full of speculation because it is not issued by the monetary authority, does not fulfill the characteristics of money, and does not have a clear legal status. Then, having no underlying assets that underlie its value, the price volatility is very high, no administrator is responsible for its issuance, used as regulatory arbitrage.

With such a profile, cryptocurrency also has a high level of risk in terms of security because it is vulnerable to hacking. Cryptocurrency can also be a channel for money laundering and even financing terrorism. So this is very dangerous. Investment in virtual money has no upper and lower limits so that when prices plummet, cryptocurrency owners' wealth will be eroded.

[maianh09]

This information shows me that South Korea is slowly becoming fearful of Crypto and that they are offering solutions that will make the Cryptocurrency industry in their country stop growing at a rapid rate. But this proves how South Korea is scared of Crypto.