Bloomberg said, “Although many Koreans are obsessed with cryptocurrency, lawmakers do not appear to be so. In January 2018, the prices of cryptocurrency were 50% higher than those in the U.S., and they have been decreasing since then, but lawmakers are still concerned.”
It was also reported that the possibility of the Korean government controlling cryptocurrency is drawing attention of global traders due to its significant role in the cryptocurrency world. Fads for investment in the cryptocurrency are global trends but they are remarkably strong in Korea. According to Bloomberg, even banks in Korea plan to prohibit their employees from trading cryptocurrency during working hours.
According to analyses by the media outlet, the fads for the cryptocurrency in Korea originate from geopolitical and psychological reasons. Quoting remarks made by Geum-ju Gwak, a psychology professor with Seoul National University, the media company cited many investors’ intention to invest in assets that can be used overseas during such political upheavals as North Korea’s nuclear weapons testing and impeachment as a reason for fads for Bitcoin in Korea.
Tae-gi Lee, a researcher with Korea Institute of Finance Industry (KIFI) cited Korean individual investors’ tendency favoring high-risk, high-yield products and the facilitated equity derivatives market as reasons.
Regarding speculation frenzy over the cryptocurrency in Korea, Bloomberg said, “Korea punches above its weight.” From the first half of last year, about 10% of global Bitcoin trading is settled with the Korean currency. In addition, Ethereum had ranked 1st in trading volume until last year.
However, the media outlet reported that investors would eventually find a way even though the Korean government cracks down on cryptocurrency. Mike Kayamori, the CEO of Quoine, a Japanese cryptocurrency trading platform, said, “Although Korean lawmakers pursue to prohibit investors from trading the cryptocurrency, Korean investors would be able to come up with an idea on how to keep purchasing cryptocurrency. The black market would exist always, and Korean investors would conduct trading overseas through Bitcoin exchange.”