Crypto Problems in Major Asian Countries

Asian Countries' Views on Cryptocurrencies

Despite its growing popularity around the world, Bitcoin is still a source of debate for monetary authorities in many countries.

In Asia, some of the region's largest economies are adopting a different approach to Bitcoin, a virtual currency whose value jumped more than 1,300% last year alone. Here's the review as reported by AFP.

Debate in South Korea

The Korean government is concerned about the risk of a bubble due to retail speculators by banning financial institutions from conducting cryptocurrency transactions.

Initial coin offerings (ICOs) are initial offers of coins or virtual currencies by companies to small fund investors to obtain funds. When announcing the banning of ICOs, the South Korean Financial Services Commission stated unequivocally "cryptocurrencies are not money, currency, or financial products".

Bitcoin exchange and another virtual currency, Youbit, declared bankruptcy after being hacked a second time. North Korea is said to be the mastermind.

Debate in Singapore

The Monetary Authority of Singapore says public warnings of cryptocurrencies are not protected by any central bank in the world and are illegal meaning those who lose out on their investments do not receive Singapore's legal protection.

Debate in Japanese

The fall in virtual currency trading, MtGox, was unable to dampen the enthusiasm of cryptocurrencies in Japan. Japan was the first country to declare Bitcoin as a legitimate means of payment.

About 10,000 businesses in the country are said to receive Bitcoin in their transactions. The number of users listed on Japan's main Bitcoin exchange, bitFlyer, penetrates 1 million accounts.

However, the governor of Japan's central bank, Haruhiko Kuroda, recently issued a warning over the skyrocketing price of Bitcoin which he called "abnormal".

Debate in Chinese

China's central bank, the People's Bank of China (PBOC) ordered several virtual currency trading platforms (cryptocurrencies) in Beijing and Shanghai to cease their activities. By banning the trading of cryptocurrencies online and illegally.

The central bank also said digital currencies had disrupted the current financial system. The National Internet Finance Association of China says more and more virtual currencies are being used in crimes, such as the drug trade.

However, the Chinese government has not banned Bitcoin mining in the country.