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We have witnessed dozens of global attempts to regulate cryptocurrencies in recent years. None of these efforts have been positive whatsoever. South Korea now urges other countries, as well as the IMF, to curb cryptocurrency trading. An interesting stance, although it may turn out rather positive for the future of Bitcoin and altcoins. Whether any of the addressed parties will take action, is something else entirely.
In a way, curbing cryptocurrency trading is all governments can do right now. Rather than take China’s lead, following South Korea may not be a bad idea. More specifically, the local financial regulator wants to prevent money laundering, terrorist funding, et cetera. Cross-border cyber transactions involving cryptocurrency have become rather problematic in South Korea over the past few months. It is unclear if any other region of the world has to deal with similar issues right now.
Regulating Cryptocurrency Trading Won’t be Easy
An international coordination to regulate cryptocurrency trading will not be easy to achieve. Very few countries are actively concerned about this new form of money. The laissez-faire attitude reigns supreme in this regard. If countries were to work together, however, interesting things could happen. It will be either beneficial or destructive for the cryptocurrency ecosystem. In this day and age, there is no middle path when it comes to governments, regulation, and cryptocurrency.
With South Korea attempting to initiate discussions, a big first step has been taken. Addressing the way people can buy and exchange cryptocurrency seems to be the top priority. No country can afford to ignore this new form of money any longer. Preventing speculative transactions is another important aspect to keep in mind. Right now, all cryptocurrencies are mainly valued based on hype and speculation. It creates very volatile markets where money can be earned and lost very quickly.
Although it is commendable to tap the IMF in this regard, that institution most likely won’t intervene. More specifically, the IMF maintains a level-headed approach to cryptocurrency trading. They have announced not to take any drastic actions for the foreseeable future. At the same time, the organization doesn’t dismiss Bitcoin and other currencies either. Whether or not other regulators will respond to South Korea’s action, remains to be determined. For the time being, it seems very little will change.