Ever since Bitcoin emerged in 2008 governments have had mixed views on crypto currency.
Some countries like China have taken an actively hostile stance on digital currency while others
have actively encouraged crypto currencies. South Korea in particular has created legislation
that facilitates the trading of this currency. To understand government opinion on the issue we
need to delve a little deeper into the world of crypto currency.
The central issue behind the conflict between governments and crypto is one of control. If
something goes wrong while using conventional currency then citizens can contact their local
government to rectify the issue. Moreover there is a monetary regulatory body in every country
set up to deal with such issues and ensure the smooth flow of financial exchanges.
However if a problem occurs when using crypto then all a user can do is try to communicate
with the online platform providing the service. For example if a person uses Binance, then by
calling the Binance support number they can ask for help. Alternatively they can call the
blockchain support number if they are using blockchain. The online company has no obligation
to facilitate the customer as any higher authority does not govern them. This situation has
naturally resulted in quite a few complaints from bereaved users.
Crypto Currency: Too much Freedom?
Advocates of crypto currency promote the idea that digital currency can create economic
freedom. Governments regulate the conventional financial system making sure to keep track of
every transaction. For example who is receiving money, who they are receiving it from and so
on. The reason for this continuous monitoring is that citizens pay the taxes that are due to the
Cryptocurrency poses a threat to this system of financial control. When a transaction is made
using crypto it is completely anonymous. There is no way to tell where the digital currency came
from and to whom it was sent. Likewise it is impossible to tell who owns any digital assets online
At first this anonymity extended to the relationship between users and currency trading
platforms as well. But due to numerous user complaints trading platforms have implemented
customer services to communicate with users. For instance if you’re a blockchain user you can
now call the blockchain support number to receive help from a company representative.
Anyone can make a crypto currency account online regardless of any conditions. However to
make a bank account in the current financial system you need to provide a series of documents
to the bank. These documents include proof of citizenship in the country where the bank is,
proof of employment or source of income, proof of residency and so on. Governments like to
control things to keep everything under control and crypto circumvents that.
In defense of governments crypto can and has been used for criminal activities and most
notably for money laundering purposes. As governments can’t see the flow of currency it
becomes harder for them to catch criminals. In addition there is no paper trail and no
documentation when you use crypto currency.
Different countries have taken different measures to deal with crypto currency. China has taken
perhaps the most extreme stance of banning it altogether but we’ll look at that further on. On the
other hand South Korea has taken a more relaxed approach. They have adopted a hybrid
model where crypto currency is subject to light regulations. Most countries however, have yet to
take a position on this issue.
Popularity in South Korea
South Korea has become one of the leading countries that are providing support to crypto
currencies. Crypto investment is booming in South Korea as statistics show that more than 40
percent of its citizens are invested in some form of crypto currency. In 2020, the government
passed laws that made digital currency exchanges and crypto currencies legal.
The story isn’t all positive as criminals have also been attracted to the South Korean crypto
markets. And to minimize this criminal activity the government has been forced to set in place
certain regulatory measures that have reduced the freedom of crypto trading. The regulations
mainly targeted money laundering operations by criminal enterprises.
Let’s look at some reasons why crypto has found a friendly home in this Asian nation. South
Korea is a strong economy with a highly educated workforce. However there is a high level of
unemployment in the nation particularly among the youth. In addition the cost of living is high
and jobs are not easily available to everyone.
The unemployed youth perceive investment in crypto currency as their golden ticket out of their
parent’s home and into their own. While the country has been on the road to economic
prosperity during the last few years the financial benefits of this progress are not shared equally
among all. Investing in crypto is one way that the less privileged countries can use to get to their
The South Korean population is also more tech-savvy when compared to other countries. The
country boasts high internet speeds. It offers a strong telecom infrastructure that provides the
backbone for citizens’ strong presence on the internet. Citizens are very active on social media
platforms and online gaming has almost become a craze among the youth.
Thanks to the booming online gaming industry South Koreans are familiar with micropayments.
Micropayments are small online charges that some online games charge their players. Because
people are used to making online payments for their gaming activities crypto investment comes
more naturally to them.
No matter how much South Korea progresses there is always the shadow of North Korea
looming behind its shoulder. Ever since the country’s partition North Korea has taken an
aggressive political stance towards South Korea. In addition North Korea’s missile testing is a
regular occurrence on international news. Thus South Korea always has a threat looming in the
Crypto provides one secure method of ensuring that citizen’s assets remain intact regardless of
North Korea’s actions. As the crypto currency is independent of any country’s infrastructure it
remains safe regardless of anything that may happen to the country. So saving assets in crypto
currency is one way South Koreans safeguards the fruit of their labor from aggressive
It’s no surprise that the crypto currency market is booming in South Korea. The government has
wisely decided to facilitate the people to venture into crypto markets. It has also established
regulatory bodies to make sure that crypto doesn’t become a problem for the people.
Online digital currency exchanges haven’t been blind to South Korean interest in their services
either. For instance if a South Korean user calls the binance support number they can talk to a
customer service representative in their native Korean language. Korean is one of the eight
languages that Binance provides customer service in.
Recently China made waves in the international financial sphere by banning crypt currency.
This ban caused an outcry from crypto investors everywhere. Users made frantic calls to their
chosen online trading platform to ensure the security of their assets. The blockchain customer
services department was completely overwhelmed by users calling the blockchain support
China is one of the world’s most highly regulated economies so it’s no surprise that they have a
problem with crypto currency. After the ban on crypto currency in September 2021 the price of
Bitcoin dropped drastically. Unfortunately the price of other digital currencies also followed suit
as they tend to rise and fall along with Bitcoin. On the surface this may seem like a major blow
to the crypto currency market but the truth is somewhat different.
First of all it’s almost impossible to ban crypto currency altogether. The nature of the system is
such that it cannot be banned. The crypto currency network is what is called a starfish
organizational pattern. If you cut off one arm of a starfish then it will grow back again. The
system is distributed and completely non-hierarchical. As long as one node on the network is
intact the rest of the system can be regenerated.
Authoritarian bodies like regulating agencies or governments follow what is called a spider
organization pattern. In this form of organization if you take out the head or central node of the
system then it collapses. Most regulatory bodies fail to realize that starfish organizations exist.
They believe that if they apply enough force then the organization is bound to break.
The distributed network technology that crypto is based on is like peer-to-peer networks.
Governments have tried to take down such networks in the past but they have always failed.
What the Chinese government can do is shut down data-mining centers where digital currencies
are created. But this will not affect crypto currency in the long run.
This recent event isn’t the first time that China has banned crypto. China has placed similar
bans at least ten times since Bitcoin first emerged in 2008. However it is unlikely that these
bans will have any greater impact than previous ones. Instead the repeated bans show that
China doesn’t have any power over the crypto market.
Some analysts say that China’s ban is a way to meet its environmental goals before the
deadline. The data mining farms that create digital currency require significant computing power
and take a toll on resources. This negatively affects the environment. So by shutting down these
farms China hopes to reduce its environmental footprint.
The crypto market has taken a dip. Most analysts agree that it will only be a temporary one and
should not affect the value of crypto stocks in the long term. China however continues to
attempt to control the flow of resources among its citizens by getting rid of crypto. Still it is
unlikely that crypto will ever go away in the foreseeable future.
Developing Nations are Joining Up
It’s no secret that the world is divided into the haves and the have-nots. In the past countries
were divided into the categories of first-world, second-world, and third-world. Today we’ve
learned to be more euphemistic and countries are called developed or developing. But
regardless of the name of the category that one’s country belongs to there is still great
Cryptocurrency provides one way for citizens of less fortunate countries to catch up to their
better-off peers in the developed world. Recent years have seen a sharp uptick in investments
by citizens of developing countries in digital currencies. Too many people, crypto investment is
how they can achieve their dream of a better life.
Pakistan is a South Asian country that ranks low on economic prosperity but its citizens have
begun to invest heavily in the digital currency market. However, while it is true that a person can
sign up with many of the online digital currency platforms regardless of nationality it is not that
Although there are no official barriers to entry into the market there are hurdles that citizens of a
developing country face. Perhaps the most pertinent is the language barrier. The interface of
most online trading platforms like Binance is in English. But most Pakistani citizens do not
In addition, customer service is usually not available in the language that a developing country’s
citizens speak. Binance provides users with the option of calling the Binance helpline in case of
problems. So if you call the Binance support number you can only get help in eight languages.
Most of which are unfamiliar to a Pakistani citizen.
Considering these limitations a Bahrain-based company called Rain is launching a digital
trading platform in Pakistan. Rain aims to capitalize on the unfulfilled niche in the Pakistani
market. The Pakistan government has already given the company permission to establish itself.
And soon people will be able to trade in Bitcoin, Ethereum, Cardano, Litecoin, and other digital
Pakistan is just one of many developing nations where companies are looking to establish
online trading platforms. Recently Coinbase the largest online platform has announced that it
would be opening a physical office in Hyderabad India. Coinbase closed its physical offices in
the US in May 2020. It became a purely remote company during the Coronavirus outbreak.
Now they plan to re-establish themselves in India to boost the local economy.
Cryptocurrency is Here to Stay
As we’ve seen throughout this article crypto currency and governments work according to
opposed beliefs. Cryptocurrency works on the premise that people should be free to make their
financial transactions. On the other hand, governments believe that finance needs to be
regulated and controlled.
Some governments have taken an encouraging stance towards crypto-like South Korea and
Pakistan. On the other hand countries like China have taken a hostile stand against digital
The truth is that cryptocurrencies cannot be effectively banned. Governments need to learn to
work with them rather than against them. However, it will undoubtedly take some time for
governments to get used to the idea of crypto.