by Joseph Young
Nam Kyung-pil, the 34th governor of Gyeonggi Province and member of South Korea’s national assembly, has heavily criticized Rhyu Si-min, the former 44th Minister of Health and Welfare and popular author, for condemning bitcoin as a bubble.
Paying Dues, not Tulips
In a statement released on social media, governor Nam encouraged the South Korean government to approach regulation as a means of fostering the local cryptocurrency sector. Governor Nam emphasized the immense economic impact a cryptocurrency trading bill would bring to the South Korean economy and criticized the government for failing to follow the trend of the global finance market.
Governor Nam’s statement translated at BTCManager read:
“Former minister and author Rhyu stated that cryptocurrencies are the 21st century’s tulip bubble. Offering such a baseless condemnation of bitcoin and the cryptocurrency market is like ridiculing the South Korean people.
The foundation of the tulip bubble formed in the Netherlands was a direct result of overheated speculation from investors blinded by financial gains. The tulip bubble was short-term which disappeared and thus generates a odious comparison to peer-to-peer financial instruments.
The governor iterated that the government should not consider South Korean investors as “foolish and insane” speculator, but instead regulate the cryptocurrency market to prevent false information and fraudulent operations from affecting local investors. If the government is truly worried about South Korean investors diving into the cryptocurrency market, without any knowledge or basis, is it not the government’s role to address this demand by providing a better infrastructure?
Why would local investors dive into the cryptocurrency market? They’ve lost hope in financial security.
So, Instead of outright rejecting the market, the government must understand the reality and comply.
South Korea cannot be the only nation that rejects bitcoin and cryptocurrencies. South Korea cannot be isolated by comdening bitcoin, cryptocurrency, and blockchain technology. I encourage the government to no longer present the South Korean people as foolish investors and take the right approach by properly regulating the South Korean market.”
Since governor Nam’s statement was released, the South Korean government has officially denied the implementation of a cryptocurrency trading ban proposal introduced by the Ministry of Justice. The Blue House, the executive office of the South Korean President Moon Jae-in, also offered a public apology for causing extreme volatility in both the South Korean and global cryptocurrency markets.
On January 15, 2018 the South Korean government and the Blue House officially stated that a trading ban will not be imposed in the short-term, and the cryptocurrency task force formed by the government will focus on drafting more efficient and practical policies to decrease speculation.
The government emphasized that market manipulators and companies that initiate fraudulent operations will be heavily punished according to existing financial regulations and policies. Over the past three days, investors within the South Korean cryptocurrency exchange market have become more confident in the local market as a result.
This week, ten cryptocurrency exchanges have revealed their plans to expand into the South Korean market. Both businesses and individual investors have regained confidence in the local sector, as a ban on cryptocurrency trading is highly unlikely as of now.