Cryptocurrency News: Asian Crypto-Trading Ban Rumours Come in Like a Wrecking Ball

E L Emerson

The rumour mill is, and will always be a more powerful system than blockchain; and its information about as reliable, secure and truth-tested as the Internet.

By example, consider the widespread reports of crypto exchanges being raided and shut down across Southeast Asian nations, and the impact of those headlines on cryptocurrency markets and the near-term prices of league leaders like Ethereum, Litecoin, Ripple and the alpha male of the pack, Bitcoin.

The headline orgy that has followed comes in like a red-ink wrecking ball; dropping apocalyptic conclusions about the cryptocurrency market, suggesting altcoins are in freefall and that cut-and-run is now the most approriate investment move.

The Crypto Reality Break

Little wonder then that the trend across the majority of coins today is, albeit temporarily, miserable. 

And believe it or not that’s a good thing.

The reality break here is that there’s now $hundreds-of-billions invested in this fledgling nine-year-old cryptocurrency market, complete with growing ties to pillar economic communities the world over, like finance and communications.

And the Blockchain technology that underpins it is anything but new. 

Old Dog, New Tricks

Peer-to-peer information exchanges are, in the world technology, old news. But like application programme interfaces (APIs) that have been around since the 1970s and allow others to link up to, use and develop important pieces of larger code, their importance and more practical applications in the new era of open source coding and SAAS are now evolving into the mainstream.      

In short, it’s not going away anytime soon. And that’s an important message to investors whose hands might be trembling at their virtual wallets while prices nose dive and whistle fast towards the ground.

So too is the reality break that, while police and tax inspectors in Southeast Asia are arriving thick and fast at crypto exchanges, the reasoning behind that sting is to identify tax evasion, alongside the longer-term agenda of instigating regulations that start to close the largest of the Silk Road-style swish cheese mesh of fiduciary loopholes. 

But make no mistake: South Korea is not banning cryptocurrency trading. The government in simplest terms is trying prevent the use of anonymous accounts, uncover the criminal elements and create more transparency from these exchanges as is part of their protect-the-people-and-the-nation objective.

Draconian Measures or Checks & Balances?

Sure, the new measures being suggested could be considered anti-crypto, where only real-name bank accounts and matching accounts at cryptocurrency exchanges can be used for deposits and withdrawals.

However, the move to do so by South Korean authorities can hardly be considered a draconian-style shut down.

Instead, think about the perspective of a government that now sees upwards of 20% of its global trade coming from digital currencies, and the potential risks of that type of volume on a market with about as many active checks and balances as the Trump administration.

Then temper your cut-and-run impulse, at least in perspective with the wild growth of the cyrptocurrency sector over the last year, and the relative validity and stability of the blockchain technology that underpins it.

It’s worth it sometimes to just take a deep breath.

E L Emerson, Editor, HNW

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