Crypto Crackdowns Have Angered Young Voters and they Are Warning Politicians
Just recently, the country considered most welcoming and a hub for cryptocurrencies raised the alarms on its citizens. The sources reveal that the regulatory authority from South Korea has proposed an action that is not in favor of the cryptocurrency community.
The regulatory authority has proposed the idea of cracking down on the cryptocurrency sector in the country. This recent proposal made by the regulator has the entire cryptocurrency industry in South Korea infuriated.
According to stats, the majority of the individuals aged between the group 20 and 45, invest a lot in cryptocurrencies. This recent proposal has literally put the investments of all the individuals aged between these groups put at a high stake.
They are concerned and angry with the recent proposal made by the regulatory authority. According to reports, the regulatory authority that has proposed a crackdown on cryptocurrencies is the Financial Services Commission (FSC).
The proposal from the head of the FSC was made following the report around the cryptocurrency performance results in the previous week. The South Korean cryptocurrency trading made headlines last week as it surpassed the daily trading volume of stock trading in the country.
This not only had the entire stocks community, analysts, and the regulatory authorities concerned, but the regulatory authorities even issued warning letters to their citizens in the country.
The letters warned the locals about the volatility, instability, and risks involved when investing in cryptocurrencies. The letter from the regulator intimated crypto investors that the cryptocurrency industry has no physical value. Therefore, it is full of risks for the crypto users to invest their money and savings in cryptocurrencies.
The central bank of Korea as well as the Financial Services Commission (FSC) have been warning their citizens about the same. As per them, cryptocurrencies are digital assets with no fundamentals and are highly unregulated.
The much-unregulated nature of cryptocurrencies makes them full of risks. Therefore, it is unsafe to invest in cryptocurrencies, as there are no chances of recovering funds lost to crypto-scams or investments going bad.
The head of the FSC also talked about the cryptocurrency exchanges operating within South Korea. He stated that the majority of the cryptocurrency exchanges in the country will not be able to survive the regulations.
In September, the South Korean government will introduce new regulations that will be strict and unbearable for many crypto exchanges. According to the head of the FSC, only the cryptocurrency exchanges, dedicated to regulatory discipline will manage to survive after that.
Although the regulatory authority talks in favor of the public, yet the public has decided to respond in a different manner. Ever since the reports of crypto crackdown emerged, the FSC’s website is filled with civilians protesting against the regulator’s proposal.
They have expressed their grief around the proposal made by the regulatory authority and have demanded the regulator to take it back.